Real Estate Comes of Age

Clayton, Jim; Gordon, Jacques N.; Fabozzi, Frank J.; Giliberto, S. Michael; Liang, Youguo; Hudson‐Wilson, Susan

doi:10.3905/jpm.2007.698955

Cited by 11 publications

(5 citation statements)

References 11 publications

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“…Thus, one can venture to say that residential property prices, as measured by hedonic indices, and inflation rates, actual and expected, are not cointegrated. The results of these studies contradict the common belief in the Insufficient market development may be one of the factors, not excluding others, like the nature of real estate as a capital-intensive, low liquidity, indivisible good, but also low market transparency, affecting inefficiency (Clayton et al, 2007;Wolski&Zaleczna, 2013). Other factors limiting real estate trade are attachment to a specific place (Kucharska-Stasiak, 2009;Hoesli & MacGregor, 2000).…”

Section: Discussionmentioning

confidence: 73%

Residential Real Estate as a Potential Hedge of Capital Against Inflation

Wolski¹

2023

Real Estate Management and Valuation

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There is a belief among investors that real estate is an excellent way to protect capital from depreciation due to inflation. Research does not provide a clear answer as to whether this investors’ belief is correct, but some approaches indicate that simple econometric methods are not able, especially in the short term, to clearly indicate the existence of a relationship between inflation and property prices (Fogler, 1984). The purpose of the study –was to find the relationship between residential real estate prices and inflation in the Polish economic conditions. Methodology of the study - the study used cointegration analysis with the Engle - Granger test. The research was carried out in the period from the first quarter of 2009 to the fourth quarter of 2021. The real estate hedonic indices calculated by NBP (National Bank of Poland) and the actual and forecasted inflation rates published by the GUS (Central Statistical Office) and the NBP (National Bank of Poland) were used in the research. The result - the analysis led to a negative verification of the research hypothesis, as it could not be proved that real estate prices were related to the level of inflation during the researched period. Originality/value - the study fills a gap in the Polish market regarding the analysis of the possibility of using real estate as a hedge against inflation. The research concerned only the Polish market, but this issue has not been taken up for years, also in mature economies.

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Section: Discussionmentioning

confidence: 73%

Residential Real Estate as a Potential Hedge of Capital Against Inflation

Wolski¹

2023

Real Estate Management and Valuation

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“…Another important aspect to look for is the growing integration of infrastructure with the global capital markets. Being a part of alternatives’ universe, as infrastructure comes of age and gains popularity as a separate asset class, it can become more vulnerable to credit and liquidity risks as in the case of real estate (Clayton et al 2007 ). These investment-related risks can, in turn, negatively impact the physical provision of basic infrastructure.…”

Section: Reporting the Findingsmentioning

confidence: 99%

Evolution of infrastructure as an asset class: a systematic literature review and thematic analysis

Gupta

Sharma

2022

J Asset Manag

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Infrastructure as an asset class has emerged as a new field of research stemming from the broader universe of infrastructure investment. Since the advent of the global financial crisis, research activities in this area are constantly strengthening providing the base for a budding research area. Despite much work done, infrastructure investment research with regard to an asset class is still at an early stage and scholarly understanding remains restricted and fragmented. To get a clear understanding of this rather opaque field, and for further advancement of scientific research, we conduct a systematic literature review and thematic analysis of 89 scientific contributions including 71 journal articles, 15 working papers and 3 conference papers published during 1997–2021. Based on a holistic examination of identified articles, we elucidate the current infrastructure investment landscape targeting two major aspects: First, we descriptively analyse the convergence of infrastructure from mere assets to an asset class. Second, we categorize the existing research into four different perspectives: capital market, investment performance, policy and stakeholder and conduct a thematic analysis to unveil major themes and sub-themes under each perspective. Furthermore, the study attempts to suggest various promising future research avenues to encourage further expansion of infrastructure investment as a research field.

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“…Which of the above-mentioned types of motivation for investment will predominate can be a matter of individual preferences, and in different regions of the same country one or the other may be given more importance (DUSANSKY et al 2012). In Poland, too, investment of capital is indicated as a reason for buying a flat, but it is outside of investors' top preferences, or so was the case when concerning the Poznań housing market in the years 2004-2007(STRĄCZKOWSKI 2009).…”

Section: Stock Market Vs Secondary Housing Marketmentioning

confidence: 99%

“…Its transparency, and hence higher security of investments, derives from the availability of reliable information and frequently updated price quotations (WALLACE 1996). The limited interest of investors on the demand side in residential real estate is probably due to the lack of relevant information on these assets (WOLSKI, ZAŁĘCZNA 2013, p. 63;CLAYTON et al 2007). Compared with the capital market, residential real estate markets have distinct local characteristics which leave investors to consider which of them to choose.…”

Section: Stock Market Vs Secondary Housing Marketmentioning

confidence: 99%

Investment Risk in the Context of Price Changes on the Real Estate and Stock Markets

Wolski

2016

Real Estate Management and Valuation

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The residential real estate market is thought to show a tendency for wide fluctuations in prices, as a result of which price bubbles appear. This element of risk has a direct bearing on investors interested in speculation and those seeking to meet their housing needs. Wide fluctuations in the values of real estate affect the investors' financial situation in many ways, by determining the possibility of meeting one's housing needs, reducing or sometimes raising creditworthiness, and by increasing investment risk measured by volatility. Omitting the obvious social dimension of the residential real estate market and concentrating on its financial aspects, the author of the article analyses to what degree wide swings in prices can be recognized as specific to this market. To this end, the volatility of prices in the stock market and in the secondary housing market in Poland is compared. An analysis is performed to establish which of them has higher average volatility measures or rates of return, i.e. which of them is more profitable or secure for investors. Statistical tests are used to find out whether average rates of return or measures of risk are equal or different between the two markets. The results of the research show that the secondary housing market and the stock market differ concerning cumulative average rates of return and standard deviations. In the first of them, they are respectively higher and lower.

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Real Estate Comes of Age

Cited by 11 publications

References 11 publications

Residential Real Estate as a Potential Hedge of Capital Against Inflation

Residential Real Estate as a Potential Hedge of Capital Against Inflation

Evolution of infrastructure as an asset class: a systematic literature review and thematic analysis

Investment Risk in the Context of Price Changes on the Real Estate and Stock Markets

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