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Impact of global risk aversion on real estate market returns

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  • Akinsomi, Omokolade
  • Abakah, Emmanuel Joel Aikins
  • Lee, Chi-Chuan

Abstract

This research investigates the impact of global risk aversion on real estate market returns. We use the quantile granger causality test, quantile on quantile regression, and rolling window wavelet correlations with data running from March 7, 2014, to September 18, 2024. Empirical results show the predictive capacity of global risk aversion on real estate market returns largely at lower quantiles of the return distributions. While several real estate markets exhibit safe haven characteristics, the level of risk aversion appears to play a critical role as these relationships evolve over time. Global risk aversion thus greatly informs investors who are exploring the diversification benefits of real estate markets.

Suggested Citation

  • Akinsomi, Omokolade & Abakah, Emmanuel Joel Aikins & Lee, Chi-Chuan, 2026. "Impact of global risk aversion on real estate market returns," Finance Research Letters, Elsevier, vol. 88(C).
    • Handle: RePEc:eee:finlet:v:88:y:2026:i:c:s1544612325024262
    DOI: 10.1016/j.frl.2025.109177
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