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Real Estate Market Efficiency: A Survey of Literature

  • Gunther Maier

    ()

  • Shanaka Herath

    ()

In this paper, we discuss the question whether or not the real estate market is efficient. We define market efficiency and the efficient market hypothesis as it had been developed in the literature on financial markets. Then, we discuss the empirical evidence that exists concerning the efficiency or inefficiency of financial markets, usually seen as the reference markets as far as market efficiency is concerned. In a separate section, we turn to the real estate market. There, we define the real estate market and discuss various aspects that are decisive for the efficiency of that market. As it turns out, the result found in the literature is inconclusive. Majority of studies provide evidence supporting inefficiency of the real estate market while several studies maintain the notion of real estate market efficiency.

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File URL: http://www-sre.wu.ac.at/sre-disc/sre-disc-2009_07.pdf
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Paper provided by Institute for Multilevel Governance and Development, Department of Socioeconomics, Vienna University of Economics and Business in its series SRE-Disc with number sre-disc-2009_07.

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Length: 50 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:wiw:wiwsre:sre-disc-2009_07
Contact details of provider: Postal: Welthandelsplatz 1, 1020 Vienna, Austria
Web page: http://www.wu-wien.ac.at/mlgd/

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