IDEAS home Printed from https://ideas.repec.org/p/arz/wpaper/eres2006_252.html
   My bibliography  Save this paper

The Impact Of Country Risk On International Real Estate Returns

Author

Listed:
  • Stephen Lee

Abstract

Commercial real estate investors usually have well-established methods to assess the risks of a property investment in their home country. However, when the investment decision is overseas another dimension of uncertainty overlays the analysis. This additional dimension, typically called country risk, encompasses the uncertainty of achieving expected financial results solely due to factors relating to the investmentís location in another country. However, very little has been done to examine the effects of country risk on international real estate returns, even though in international investment decisions considerations of country risk dominate other effects. This study extends the literature on international real estate diversification by empirically estimating the impact of country risk, as measured by Euromoney Country Risk (ECR) data, on the direct real estate returns of 15 countries over the period 1998-2005, using cross section and pooled data analyses. The results suggest that country risk data may help investorís in their international real estate decisions since the ECR index has a significant and consistent impact of return performance.

Suggested Citation

  • Stephen Lee, 2006. "The Impact Of Country Risk On International Real Estate Returns," ERES eres2006_252, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2006_252
    as

    Download full text from publisher

    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2006-252
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Karsten Lieser & Alexander Groh, 2014. "The Determinants of International Commercial Real Estate Investment," The Journal of Real Estate Finance and Economics, Springer, vol. 48(4), pages 611-659, May.
    2. Lieser, Karsten, 2011. "Pricing of real estate specific market risks for worldwide 66 countries," IESE Research Papers D/940, IESE Business School.

    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arz:wpaper:eres2006_252. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Architexturez Imprints (email available below). General contact details of provider: https://edirc.repec.org/data/eressea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.