Does listed real estate behave like direct real estate? Updated and broader evidence

Hoesli, Martin; Oikarinen, Elias

doi:10.1080/00036846.2020.1870921

Cited by 14 publications

(2 citation statements)

References 40 publications

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“…We first look at the behavior of securitized real estate capital returns across sectors in Europe. Such analysis is useful as research has shown that, given its greater information efficiency, the listed real estate market reacts more quickly to changes in fundamentals than the direct market (Hoesli and Oikarinen, 2012, 2021). Hence, the listed real estate market should uncover any price developments before the direct market.…”

Section: Real Estate Prices Post-covid-19mentioning

confidence: 99%

Commercial real estate prices in Europe after COVID-19

Hoesli,

Malle

2023

JERER

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PurposeThe article aims to analyze the behavior of commercial real estate prices in Europe, with a focus on the post-coronavirus disease 2019 (COVID-19) pandemic period. The authors use national and city-level data for the various commercial real estate sectors in ten countries, as well as listed real estate data, to assess any differences across property type and space.Design/methodology/approachThe authors analyze the behavior of commercial real estate prices after the COVID-19 pandemic, emphasizing differences across property types. For that purpose, the authors use national and city-level direct real estate data for the ten largest countries in terms of market capitalization, as well as listed real estate data. The article then turns to discussing the likely trajectory of commercial real estate prices in the future.FindingsThe recent rise in interest rates and geopolitical instability have affected prices differently across sectors. Industrial properties benefited from the pandemic, although prices declined significantly in 2022. Residential properties continued their upward price trend and have been the best-performing property type during the last two decades. Retail real estate continued its downward price trajectory. Thus far, office markets do not appear to be significantly affected by structural changes in the sector. The data for listed real estate markets in Europe suggest that markets bottomed out in early 2023.Originality/valueThis paper provides for a better understanding of the behavior of commercial real estate prices in Europe since the COVID-19 pandemic. The authors assess whether the effects found during the COVID-19 crisis were temporary or long-lasting. Also, many economic and political uncertainties have emerged since the beginning of the Ukraine war in February 2022, and it is important to analyze the effects of such uncertainties on commercial real estate prices.

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Section: Real Estate Prices Post-covid-19mentioning

confidence: 99%

Commercial real estate prices in Europe after COVID-19

Hoesli,

Malle

2023

JERER

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“…alternatywnych nieruchomości, jak centra obsługi danych (EPRA, 202b). Porównując długoterminowe zyski z notowanych i nienotowanych spółek nieruchomościowych opartych na tych samych aktywach bazowych, widzimy, że sektor giełdowy jest efektywnym wskaźnikiem zastępczym dla bezpośrednich inwestycji w nieruchomości (Hoesli i Oikarinen, 2021). Jednak podmioty inwestujące w nieruchomości notowane na giełdzie -jak REIT (LRE) -mają tę zaletę, że są bardziej przejrzyste, dywersyfikowane, płynne i oferują łatwiejszy globalny dostęp do nieruchomości w porównaniu z typowymi inwestycjami bezpośrednimi (EPRA, 2020a).…”

Section: Działalność Podmiotów Typu Reit a Covid-19unclassified

Pandemia COVID-19 a działalność podmiotów typu Real Estate Investment Trust (REIT) na wybranych rynkach nieruchomości

Mazurczak¹

2022

Tendencje Rozwoju Współczesnego Rynku Nieruchomości Mieszkaniowych

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The COVID-19 pandemic and the activity of Real Estate Investment Trust (REIT) entities on selected real estate markets. Purpose: The aim of the study is to assess the short- and long-term impact of the pandemic on the activity of REITs on selected global markets. Design/methodology/approach: The research tool consisted in an analysis of the available REIT market indices – FTSE NAREIT Index, and the basic capital market benchmarks, such as the S&P 500, Dow Jones and Russel 2000 indices. On this basis, it could be observed that REITs behaved in a similar way to the capital market, and the reactions of the main global REIT indices dynamically reflected the situation in which the global markets found themselves. Findings: Similar to the 2006-2008 financial crisis, REITs reacted dynamically to the global situation at the beginning of the COVID-19 pandemic. However, this effect has been shortlived so far, and the largest drops in rates of return were observed in the first stage of the pandemic, i.e. in March and April 2020. The long-term effects of COVID-19, on the other hand, relate to the verification of the perception of individual real estate market segments, reconstruction of investment strategies and the search for new directions for building property portfolios, which can be verified when the pandemic is over. Originality and value: The study is an attempt to join the international discussion devoted to the assessment of the impact of the pandemic on global economies, including real estate markets, regarding the functioning of REITs as one of the most common forms of indirect real estate investment in the world.

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