Multi Attribution Analysis: Better Measuring is Better Understanding
||Overbeeke, Theo; Bert Teuben and Aart Hordijk
||Multi Attribution Analysis: Better Measuring is Better Understanding
||Book of Abstracts: 2005 European Real Estate Society conference in association with the International Real Estate Society
||The ROZ/IPD Property index was established in 1994 to publicize an independent index on directly held real estate in the Netherlands. The real estate universe is split into the sectors: retail, offices, industrial, residential and mixed use/other. Based on the heterogeneous characteristics of properties for each sector attribution analyses are made. In the analyses the performance for the different characteristics of the sector could be compared. The office sector is segmented into centre location, office area, residential area, industrial park and other locations in common. Other analysis are also made for instance for geographic areas and the year of construction. Based on the segmentation for the office sector several analysis are already available with all different results for the benchmark's performance. The different kind of attribution analyses makes the used benchmark objective. A working group of the ROZ/IPD Property index called "hedonic benchmarking" carried out a study on the possibility to produce one single and uniform benchmark tool, including miscellaneous individual property characteristics. The tool produces a benchmark for each individual property, based on the properties characteristics: "how would this property have performed, if it were compared with its peers?". The study is based on the method of hedonic pricing, which is frequently used in the real estate sector (mostly residential) for analysis on rental levels and purchase prices. The analysis is made for individual years and time intervals and carried out for the total return, capital growth and the income return. The paper describes the results of the return's explicability, based on the individual property characteristics.
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