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The Determinants of International Commercial Real Estate Investment

  • Karsten Lieser


  • Alexander Groh


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    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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    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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