Macroeconomic Risk Factors in the Returns from International Real Estate Securities

2012 ◽  
Author(s):  
Andrey D. Pavlov ◽  
Eva Maria Steiner ◽  
Susan M. Wachter
Keyword(s):  
Risk Factors ◽  
Real Estate ◽  
Macroeconomic Risk ◽  
Real Estate Securities

Low-frequency volatility of real estate securities and macroeconomic risk

2017 ◽  
Vol 58 ◽  
pp. 311-342 ◽  
Author(s):  
Chyi Lin Lee ◽  
Simon Stevenson ◽  
Ming-Long Lee
Keyword(s):  
Real Estate ◽  
Low Frequency ◽  
Macroeconomic Risk ◽  
Real Estate Securities

Time-varying Macroeconomic Risk of Real Estate Returns

2016 ◽  
Author(s):  
Felix Schindler ◽  
Bertram Steininger ◽  
Tim Kroencke
Keyword(s):  
Real Estate ◽  
Time Varying ◽  
Macroeconomic Risk ◽  
Real Estate Returns

Real Estate Risk Factors and Portfolio Allocation

2018 ◽  
Author(s):  
Martin Hoesli ◽  
Jean-Christophe Delfim
Keyword(s):  
Risk Factors ◽  
Real Estate ◽  
Portfolio Allocation

scholarly journals Pricing ESG Equity Ratings and Underlying Data in Listed Real Estate Securities

2021 ◽  
Vol 13 (4) ◽  
pp. 2037 ◽  
Author(s):  
Dirk Brounen ◽  
Gianluca Marcato ◽  
Hans Op ’t Veld
Keyword(s):  
Real Estate ◽  
Best Practices ◽  
Stock Returns ◽  
The Real Estate ◽  
Public Property ◽  
European Public ◽  
Property Companies ◽  
Real Estate Securities ◽  
The Impact ◽  
European Markets

By analyzing the adoption of the European Public Real Estate Association’s (EPRA) Sustainability Best Practices Recommendations (sBPR), we examine and discuss the application of transparent environmental, social and governance (ESG) ratings and their interaction with public real estate performance across European markets. Due to increasing concerns about the environment and the impact of investment on society at large, public property companies have made significant progress in improving transparency and enhancing the protection of shareholder value by sharing and reporting ESG best practices. We explore and review the EPRA sBPR database, which is highly useful for investors who are already screening listed real estate companies. Hence, in this project, we carefully study the diffusion process of this new ESG metric as a tool to enhance informational transparency regarding public real estate investment management and assess the effects of this transparency and ESG performance for the real estate stock returns. We find evidence of a sustainability premium that investors are willing to pay to access companies with better sustainable ratings.

International Real Estate Review

2016 ◽  
Vol 19 (4) ◽  
pp. 411-434
Author(s):  
Su Chan ◽  
◽  
Ko Wang ◽  
Jing Yang ◽  
◽  
...  
Keyword(s):  
Risk Factors ◽  
Interest Rate ◽  
Real Estate ◽  
Numerical Analyses ◽  
Theoretic Model ◽  
Equity Financing ◽  
Game Theoretic ◽  
Game Theoretic Model

In this study, we use a simple 2-period game theoretic model to determine a mutually acceptable interest rate for a construction loan. This mutually acceptable interest rate is the rate that makes a developer indifferent between using 100% equity financing and a construction loan. It is also the highest interest rate that a developer is willing to pay and a bank is willing to lend. The three risk factors identified in the model are the loss, leverage and first-phase loan ratios. Our analytical and numerical analyses indicate that the derived mutually acceptable interest rate has desirable properties as the rate increases with an increase in the three identified risk factors.

Analysing project risks in Ghana’s real estate industry

2018 ◽  
Vol 16 (4) ◽  
pp. 413-428
Author(s):  
Charles Amoatey ◽  
Doreen Danquah
Keyword(s):  
Risk Factors ◽  
Real Estate ◽  
Construction Industry ◽  
Project Managers ◽  
Environmental Risks ◽  
Real Estate Industry ◽  
Content Type ◽  
Market Risks ◽  
Project Risks ◽  
Technical Risks

Purpose The purpose of this paper is to analyse project risks in Ghana’s real estate construction industry in terms of likelihood of occurrence, severity of impact and controllability. Design/methodology/approach A quantitative research approach was used in this study to address the research objective. The study population consisted project managers, architects, surveyors and contractors from 17 members of the Ghana Real Estate Developers Association (GREDA) in Ghana. Random stratified sampling technique was used to select 97 participants from these firms. A structured questionnaire was used to collect primary data, whereas descriptive statistics were used to present findings. Findings All risks identified have some level of likelihood of occurrence, extent of severity of impact and controllability. Market risks, technical risks and environmental risks are more likely to occur. Market risks, technical risks and environmental risks had the highest severity of impact. Financial risks, market risks, managerial risks and technical risks are the most controllable. Among all risks, environmental risks are the direst because they have high likelihood of occurrence and severity of impact but very low controllability. Real estate construction firms (developers) are therefore expected to prioritize remedy of environmental risks. Research limitations/implications The study is based on self-reported perception of project parties on the likelihood, severity of impact and controllability of real estate project risk factors. Firms outside of GREDA were not included in the survey. Therefore, generalisation of these risk factors for the entire construction industry should be done with caution. Practical implications The research results show that Ghanaian real estate developers are aware of the existence of the risks which impact on the performance of the industry. To effectively and efficiently manage these risk factors, project parties must understand the likelihood of occurrence, severity of impact and controllability of the risk factors, as well as individual firm’s responsibilities and capabilities to manage them. Such knowledge helps project managers to prioritise risks in managing them in the face of scarce resources. From an academic research perspective, the paper contributes to a conceptual risk assessment framework for the real estate industry. Originality/value The paper’s main contributions relate to the introduction of real estate construction sector-specific factors to project risk management modelling.

Approach to Prioritizing the Commercial Real Estate Development Risk

2021 ◽  
Vol 15 (2) ◽  
pp. 114-126
Author(s):  
Malka Thilini ◽  
Nishani Champika Wikcramaarachchi ◽  
P.A.N.S. Anuradha
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Real Estate ◽  
Management Strategies ◽  
Commercial Real Estate ◽  
Property Development ◽  
Analytic Hierarchy ◽  
Investment Projects ◽  
Risk Management Strategies ◽  
Development Risk

After 30 years of war in Sri Lanka, the demand for real estate has increased tremendously across the nation. Similarly, numerous real estate sub-sectors have avidly participated in the worldwide boom. However, with failures and poor functioning of many investment projects, the industry's risk management reputation has been put in jeopardy, followed by the coronavirus (COVID-19). Though it is less popular among Sri Lankan property developers, risk management strategies in development projects have become a pressing requirement. This paper's goal is to look at commercial property development risk elements from the perspective of a real estate developer in relation to Social, Economic, Environmental, Technological, Political, and Pandemic Risks. The research first evaluates risk variables using a super decision software model based on the Analytic Hierarchy Process (AHP), then prioritizes the most important risk factors, and lastly examines effective risk management measures for successful real estate developments. The data collection has been carried out using interviews through telephone conversations with the help of a structured questionnaire. Accordingly, 35 risk factors have been assessed altogether. For the three projects, the synthesized values were 1.0000, 0.510763, and 0.604037, respectively. Based on the analysis of superMatrix calculation, project A is regarded as the best alternative project in such circumstances. Pandemic Risk, Economic Risk, and Political Risk have all had a significant impact on the primary risk criteria. Therefore, COVID-19 Pandemic Risk Emergence, Workforce Availability, Duration, Delays in Council Approval/License Approval Process and Natural Disaster Impact were identified as the highest influenced sub-risk factors. Identifying the risk factors on this avenue will also help in making better investment decisions while increasing the unpredictable nature of the real estate field and future satisfaction of loan team investment goals within the country.

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