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The determinants of international commercial real estate investments

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  • Lieser, Karsten

    ()
    (IESE Business School)

  • Groh, Alexander P.

    (EMLYON Business School)

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    Abstract

    We examine the determinants of commercial real estate investments using a unique set of panel data series for 47 countries worldwide, ranging from 2000 to 2009. We explore how different socio-economic, demographic and institutional characteristics affect commercial real estate investment activity through both cross-sectional and time-series analyses, running augmented random effect panel regressions. We provide evidence that economic growth, rapid urbanization and compelling demographics attract real estate investments and also confirm that lack of transparency in a country's legal framework, administrative burdens of doing real estate business, socio-cultural challenges and political instabilities reduce international real estate allocations.

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    Bibliographic Info

    Paper provided by IESE Business School in its series IESE Research Papers with number D/935.

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    Length: 55 pages
    Date of creation: 13 Jul 2011
    Date of revision:
    Handle: RePEc:ebg:iesewp:d-0935

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    Postal: IESE Business School, Av Pearson 21, 08034 Barcelona, SPAIN
    Web page: http://www.iese.edu/
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    Related research

    Keywords: Real Estate Investments; International Asset Allocation; Real Estate Market Attractiveness;

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    Cited by:
    1. Michal Hlavacek & Ondrej Novotny & Marek Rusnak, 2014. "Office Property in Central European Countries," Occasional Publications - Chapters in Edited Volumes, in: CNB Financial Stability Report 2013/2014, chapter 0, pages 148-155 Czech National Bank, Research Department.

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