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Paper eres2001_206:
The Relative Importance of Sector and Regional Factors in Real Estate Returns

id eres2001_206
authors Lee, Stephen L.
year 2001
title The Relative Importance of Sector and Regional Factors in Real Estate Returns
source 8th European Real Estate Society Conference (26-29 June 2001) Alicante, Spain
summary This paper presents an elegant and simple approach to the decomposition of sector and regional influences on property returns, and thus provides a quantitative framework for analysing the relative impact of these two diversification categories to real estate portfolio selection. Using data on Retail, Office and Industrial properties spread across 326 real estate locations in the UK, over the period 1981 to 1995, the results show that the performance of real estate is largely sector-driven, a result in line with previous work. Which implies that the sector composition of the real estate fund should be the first level of analysis in constructing and managing the real estate portfolio. As a consequence real estate fund managers need to pay more attention to the sector allocation of their portfolios than the regional spread.
keywords Sector and Regional Factors, Performance and Diversification
series ERES:conference
discussion No discussions. Post discussion ...
ratings
session Determinants of real estate growth
last changed 2009/07/10 18:07
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