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The Determinants of International Commercial Real Estate Investment

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  • Karsten Lieser

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  • Alexander Groh

    ()

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    Abstract

    We examine the determinants of international commercial real estate investment using a unique set of panel data series for 47 countries worldwide, covering the period from 2000 to 2009. We explore how different socio-economic, demographic and institutional characteristics affect commercial real estate investment activity by determining both cross-sectional and time-series estimators, running augmented random effect panel regressions. We provide evidence that economic growth, rapid urbanization and compelling demographics attract real estate investment, and also demonstrate that a lack of transparency in the legal framework, administrative burdens of doing real estate business, socio-cultural challenges and political instabilities reduce international real estate allocations. Copyright Springer Science+Business Media New York 2014

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    File URL: http://hdl.handle.net/10.1007/s11146-012-9401-0
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    Bibliographic Info

    Article provided by Springer in its journal The Journal of Real Estate Finance and Economics.

    Volume (Year): 48 (2014)
    Issue (Month): 4 (May)
    Pages: 611-659

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    Handle: RePEc:kap:jrefec:v:48:y:2014:i:4:p:611-659

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    Web page: http://www.springerlink.com/link.asp?id=102945

    Related research

    Keywords: Real Estate Investment; International Asset Allocation; Real Estate Market Attractiveness; Augmented Random Effect Panel Regression; C33; C23; G11; G23; G24; O16; O18; P25; P52;

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