Are REITs real estate? Evidence from international sector level data

2012 ◽  
Keyword(s):  
Real Estate ◽  
Level Data ◽  
International Sector

scholarly journals International Real Estate Review

2012 ◽  
Vol 15 (3) ◽  
pp. 307-324
Author(s):  
Stephanie Y. Rauterkus ◽  
◽  
Norman G. Miller ◽  
Grant I. Thrall ◽  
Michael A. Sklarz ◽  
...  
Keyword(s):  
Real Estate ◽  
Tipping Point ◽  
Sales Volume ◽  
The Real ◽  
The Real Estate ◽  
Level Data ◽  
Zip Code ◽  
Total Sales

We examine the real estate owned (REO) discount by using ZIP code-level data on foreclosure rates, distressed and non- distressed sales in Chicago, Illinois. We find significant differences in price between distressed and non-distressed properties in high- versus low-foreclosure rate neighborhoods. We expand this analysis to determine if trends in the REO discount can be explained by trends in foreclosure rates and if this correlation can be used to identify a ¡¥tipping point¡¦ in foreclosure rates. We identify key relationships between trends in the REO discount, the proportion of REO sales to total sales, and sales volume.

Banks and People in the Development Process

2014 ◽  
pp. 12-21
Author(s):  
Atanu Sengupta ◽  
Sanjoy De
Keyword(s):  
Economic Development ◽  
Real Estate ◽  
Crucial Role ◽  
Development Process ◽  
Investment Banks ◽  
Rural India ◽  
The People ◽  
Level Data ◽  
The Web

Economic development is crucially an end product of mobilizing dormant savings into the fragrance of a new life - what is commonly called as investment. Banks play a crucial role in this channelization. In an underdeveloped economy like India, there are many traditional avenues of savings (such as gold, land, livestock, real estate, and so on). There may be many motives why people opt for traditional avenues rather than formal banking. The traditional avenues are believed to be more trustworthy and down to earth. The strict rules and stereotyped functioning of the formal banks can make them uncomfortable to the people in the underdeveloped areas. Thus, a huge fund in India is caught in the web of informal banking streams. This chapter seeks to understand how far and to what extent these changes have occurred in India. First, the authors consider a case study from rural India that depicts disparate banking behavior of rural populace. Next, they use district level data on banking habits across all the states of India. The authors first note the pattern and distribution of banking habits of people across the subcontinent. They then try to assess the reasons behind such discrepancy.

scholarly journals Preferences of Institutional Investors in Commercial Real Estate

2021 ◽  
Author(s):  
Dragana Cvijanović ◽  
Stanimira Milcheva ◽  
Alex van de Minne
Keyword(s):  
Real Estate ◽  
Market Segmentation ◽  
Institutional Investors ◽  
Global Financial Crisis ◽  
Commercial Real Estate ◽  
Time Varying ◽  
Transaction Process ◽  
Level Data ◽  
Micro Level ◽  
The Global Financial Crisis

AbstractIn this paper we analyze market segmentation by firm size in the commercial real estate transaction process. Using novel micro-level data, we look at the probability distribution of investors acquiring a specific bundle of real estate characteristics, distinguishing between investors based on the size of their real estate portfolio. We find evidence of market segmentation by investor size: institutional investors segment across property characteristics based on the size of their real estate portfolio. The probability that a large (small) seller will sell a property to a similar-sized buyer is higher, keeping all else equal. We explore potential drivers of this market segmentation and find that it is mainly driven by investor preferences. During the Global Financial Crisis (GFC), large investors were less likely to buy the ‘average’ property, as compared to the period before or after the crisis, indicating time-varying investor preferences.

scholarly journals HOUSING FINANCE: IMPACT OF HEAVY INTEREST INCOME TAX

2021 ◽  
Vol 6 (2) ◽  
pp. 102-124
Author(s):  
Igor Semenenko ◽  
Jun Wook Yoo
Keyword(s):  
Real Estate ◽  
Jel Classification ◽  
Fixed Income ◽  
Property Prices ◽  
Interest Income ◽  
Level Data ◽  
Retail Investors ◽  
Real Estate Investments ◽  
Rate Environment

Heavy taxation of interest income becomes a structural driver of property prices in a low-interest-rate environment. Inflation-adjusted price appreciation in 1996-2017 is approximately 200 basis points higher in 14 countries allowing no exemptions on interest income than in 37 countries that tax interest income at favorable rates or provide exemptions. Results for average returns over long-term periods are confirmed in models with annual frequencies, city-level data, and in a sample of 39 OECD countries for which price/rent ratios are available. It appears that investors view direct real estate, a heavily tax-favored asset, as an inflation hedge and/or alternative to fixed income asset. Higher interest income taxation may be fueling demand for direct real estate investments by retail investors. Separately, my empirical findings suggest that easy monetary policy effects can be magnified through the housing channel in countries that do not allow exemptions on interest income. Consequently, we should expect larger investment misallocations due to asset prices departure from fundamentals in some geographies. JEL Classification Codes: E3, E4, F3, G1, G5, H2.

Beginning farmers' entry and exit: evidence from county level data

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Valentina Hartarska ◽  
Denis Nadolnyak ◽  
Nisha Sehrawat
Keyword(s):  
Real Estate ◽  
Women Farmers ◽  
County Level ◽  
Barriers To Entry ◽  
Entry And Exit ◽  
Content Type ◽  
Access To Credit ◽  
Farm Work ◽  
Level Data ◽  
Beginning Farmers

PurposeThis paper identifies factors that affect entry and exit of beginning, young and women farmers and ranchers.Design/methodology/approachThe empirical framework is fixed effects regression analysis that uses county level data to evaluate how barriers to entry, access to and use of credit, local economic environment, and climate affect entry and exit of Beginning Farmers and Ranchers (BFRs). The dataset is assembled from several sources matching the Census of Agriculture years for the period of 1997–2017.FindingsResults show that new farmers are more likely to enter in counties with more and smaller farms and with lower farm productivity, indicating that BFRs have the potential to improve the overall productivity in such counties if able to grow and succeed. The results also indicate that the high capital intensity nature of farming is an effective barrier to entry. BFRs are more likely to do better in counties where agriculture is more important to the economy and with more off-farm work opportunities. The net entry is positively associated with higher input/output price index and the use of insurance but is unaffected by government payments and farm and off-farm income. The authors observe substitutability between farming and alternative self-employment for more entrepreneurial young people. Net entry increases with availability of non-real-estate loans but decreases with real estate credit. Thus, for BFRs to acquire the assets needed to reach optimal scale, access to credit remains essential.Originality/valueThe authors are not aware of other work that estimates how barriers to entry and other economic factors including access to credit affect entry and exit of BFRs of various ages and young and women farmers using the Census of Agriculture data up to 2017.

Quantification of financial consequences of buildings' ageing: analysis of panel building-level data from the Polish office space market

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bolesław Kołodziejczyk ◽  
Dmytro Osiichuk ◽  
Paweł Mielcarz
Keyword(s):  
Real Estate ◽  
Financial Performance ◽  
Content Type ◽  
Financial Outcomes ◽  
Level Data ◽  
Real Estate Investments ◽  
Occupancy Rates ◽  
The Impact ◽  
Real Estate Assets

PurposeRelying on a unique proprietary Polish office market space database, the paper attempts to quantify the impact of buildings' age on the financial performance of real estate assets.Design/methodology/approachPanel econometric modeling was utilized to disentangle the impact of buildings' functional obsolescence and technical deterioration on their long-term financial performance.FindingsIn line with casual empiricism, our findings show a negative associative link between properties' age and potential lease revenue. The concomitant stickiness of service charges presages a possible long-term deterioration of financial outcomes of real estate investments. While older buildings generally have higher occupancy rates, the absorption rates are found to be negatively affected by the properties' age. On the bright side, the elasticity of vacancy rate with respect to rental rates is found to decrease as buildings get older. Further, the rent differential is confirmed to be more pronounced in higher age properties hinting at an existing potential for price discrimination, which may at least partially compensate for stagnant rents.Originality/valueOur empirical results confirm the properties' age to be a statistically significant factor in shaping the long-term performance of real estate assets, which should be better accounted for in financial projections for real estate developments.

Do real estate values boost corporate borrowing? Evidence from contract-level data

2021 ◽  
Author(s):  
Murillo Campello ◽  
Robert A. Connolly ◽  
Gaurav Kankanhalli ◽  
Eva Steiner
Keyword(s):  
Real Estate ◽  
Level Data ◽  
Corporate Borrowing

Banks and People in the Development Process

2014 ◽  
pp. 661-669
Author(s):  
Atanu Sengupta ◽  
Sanjoy De
Keyword(s):  
Economic Development ◽  
Real Estate ◽  
Crucial Role ◽  
Development Process ◽  
Investment Banks ◽  
Rural India ◽  
The People ◽  
Level Data ◽  
The Web

Economic development is crucially an end product of mobilizing dormant savings into the fragrance of a new life - what is commonly called as investment. Banks play a crucial role in this channelization. In an underdeveloped economy like India, there are many traditional avenues of savings (such as gold, land, livestock, real estate, and so on). There may be many motives why people opt for traditional avenues rather than formal banking. The traditional avenues are believed to be more trustworthy and down to earth. The strict rules and stereotyped functioning of the formal banks can make them uncomfortable to the people in the underdeveloped areas. Thus, a huge fund in India is caught in the web of informal banking streams. This chapter seeks to understand how far and to what extent these changes have occurred in India. First, the authors consider a case study from rural India that depicts disparate banking behavior of rural populace. Next, they use district level data on banking habits across all the states of India. The authors first note the pattern and distribution of banking habits of people across the subcontinent. They then try to assess the reasons behind such discrepancy.

Sign in / Sign up

Export Citation Format

Share Document