The Benefits of Real Estate Investment 2004 Update
- Source:
- University of Massachusetts
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Overview: Real estate investment represents a significant part of many institutional portfolios. Since real estate is not directly traded on a centralized exchange, the physical real estate market is characterized by relative lack of liquidity, large lot size and high transactions costs with properties geographically fixed and are heterogeneous. The low transparency of the real estate marketplace also results in potential asymmetric information. This provides a source of relatively high, risk-adjusted returns to those individuals who can obtain costless 'quality' information. Further, the lack of frequent transaction data for the analysis of return distributions often requires the use of appraisal-based series.
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Format: PDF | Size: 41KB | Date: Feb 2004 | Pages: 12




