Suchergebnisse

Purpose
In the light of past financial and economic turmoil, there has been a marked increase in the volatility in real estate markets. This has impacted on the pricing of property assets, partly through market sentiment and particularly concerning risk. It also limits modelling accuracy model accuracy. The purpose of this paper is to create a new variable and model to enhance analysis of what drives real estate yields incorporating market sentiment to risk.


Design/methodology/approach
This paper specifically considers the modelling of property pricing within a volatile economic environment. The theoretical context begins by analysing the relationship between property yields and government bonds. The analytical context then moves on to specifically include a measurement of risk which stresses its role and importance in investment markets since the Global Financial Crisis. The model thus incorporates macroeconomic and real estate data, together with an international risk multiplier, which is calculated within the paper.


Findings
The paper finds the use of measurements of market sentiment and risk are more powerful tools for modelling yields than previous techniques alone.


Research limitations/implications
This is an initial paper outlining the creation of sentiment and risk measurements in the financial market and showing an example of its application to a commercial real estate market. The implication is that this could add a major new explanatory variable to modelling of yields.


Practical implications
The paper highlights the importance of risk in the pricing of commercial real estate, over and above normal variables. It highlights how this can help explain over and undershooting of yields within commercial real estate which would be of great importance in the investment world.


Originality/value
This paper attempts to explicitly measure market sentiment, pricing of risk and how this impacts real estate pricing.

Urban regeneration has increasingly emphasised long-term policy objectives and public—private partnership arrangements where risk and profits are more equitably distributed between the parties. Similarly, successive governments have endorsed area-based regeneration vehicles with increasing importance placed on enterprise zones, business improvement districts (BIDs), tax incremental finance, and other local asset backed vehicles. Each regeneration vehicle necessitates a clear policy direction and performance measurement of its policy outputs to ensure that funding is targeted at initiatives delivering sustainability impacts. This paper presents a 'market' and 'nonmarket' appraisal of the financial impact of BIDs as an area-based regeneration vehicle. It utilises data from a UK-wide survey to demonstrate the potential of BIDs in generating direct income and indirect investment and how the output capacity of the BID model increases over time. The paper concludes that BIDs have significant leverage potential whilst acting as a key conduit for coordinating wider area-based regeneration.

PurposeThe purpose of this paper is to investigate the relationship between urban design quality and the real estate value of high street retail properties. Quantitative research on the added value of quality design has seen little advancement during the past two decades and hedonic analysis of the high street retail sector remains embryonic. This paper bridges this gap by providing empirical evidence on the added value of quality design.Design/methodology/approachThe study uses a unique dataset of 301 Belfast City Centre retail transactions during the period 1994‐2009. Ordinary least squares (OLS) regression analysis is used to estimate a hedonic pricing model that utilises a composite range of variables. These variables were designed employing quantitative and qualitative approaches complementarily to strengthen the value of the empirical research.FindingsThe findings suggest that aspects of quality design such as connectivity, frontage continuity and variety, material quality and massing appropriateness add to real estate value. These findings supplement those on sector‐specific value determinants that emphasise the high impact of location, tenant characteristic and Zone‐A price calculations.Practical implicationsIn analysing high street retail rent determinants this paper focuses on the impact of various aspects of quality design to inform investors and developers about those aspects that are highly valued by city centre retail tenants. Policy makers benefit from the findings through empirically justified built environment benchmarks for improving the quality of life in our cities.Originality/valueThis study provides a quantitative model for measuring urban design quality which uses data from a UK city but has a wider application range. It bridges a significant gap in the literature related to hedonic investigation of the added value of quality design by providing a holistic approach to quality.

Examines diversification focusing on international and cross‐border investment. Extends the concept of regional diversification to European planning regions and discusses the potential implications of a "Europe of the regions" on property investment. Uses cross‐sectional analysis to identify the criteria influencing property investment performance across a number of European cities. Model outcomes indicate the importance of local factors in particular market size. Also provides, in this analysis support to the hypothesis concerning linkages between real estate returns, GDP and employment characteristics.

The comparative method of valuation is based on valuers interpreting prices agreed in the open market to arrive at an opinion of value. This requires the consideration of a diverse range of variables and an assessment of their relative impact. Behavioural analysis using an independent sample of buyers and valuers operative in the Belfast residential market indicates that there are statistically significant differences between the two sample groups in the scoring and ranking of variables. In particular valuers are shown to place a greater emphasis on environmental or neighbourhood effects. Discusses the outcome of this empirically‐based research and analyses whether differences in the treatment of variables between the valuer and buyer samples are reflected in different price and value distributions. The results indicate that valuation accuracy to within 5 per cent of transaction price is not upheld; rather it is argued that a 10 per cent threshold has greater credibility.

Suggests that capital investments normally flow to economic sectors
and regions which produce the highest returns within certain risk
parameters. Therefore geographical areas perceived to be peripheral to
the core economy of a certain country, region or city suffer when
attracting institutional investment. Investigates investment flows into
real estate in two peripheral economies: Northern Ireland and the
Republic of Ireland. Analyses data from the Investment Property Databank
(IDP) and market participants in terms of regional and sectoral
performance, and assesses institutional investors′ perceptions of
investment activity in Ireland as a peripheral European region. Also
compares investment performance of institutional property holdings in
Ireland to returns in the UK.

The role of state intervention in stimulating inner‐city land markets
for private‐sector residential development is becoming an increasingly
important element of urban regeneration strategies. Considers how fiscal
incentives are being employed in inner‐city Dublin to promote investment
opportunity in the housing sector. Examines the operation of targeted
tax‐based incentives with illustrations to show how a demand‐driven
residential property market is being created in locations which were
traditionally neglected by investors.

PurposeOffice markets and particularly international financial centres over the past decade have experienced rapid financialisation, developments and indeed changes in the post-global financial crisis (GFC) landscape. Importantly, the volume and types of international capital flows have witnessed more foreign actors and vehicles entering into the investment landscape with the concentration of investment intensifying within key financial centres. This paper examines the interaction of international real estate capital flows in the London, New York and Tokyo office markets between 2007 and 2017.Design/methodology/approachUsing Real Capital Analytics (RCA) data comprising over 5,700 office property transactions equating to $563bn between 2007 and 2017, the direct global capital flows into the London, New York and Tokyo office markets are assessed using an autoregressive distributed lag (ARDL) approach. Further, Granger causality tests are examined to analyse the short-run interaction of international real estate capital flows into these three major office markets.FindingsBy assessing the relativity of internal to external investments in these three central business district (CBD) office markets, differences in market dynamics are highlighted. The London office market is shown to be highly dependent on international flows and the USA, the foremost source of cross-border investment on the global stage. The cointegration and causality analysis indicate that cross-border real estate investment flows in these markets (and financial centres) show both long- and short-run relationships and suggest that the London office market remains more distinct and the most reliant on international capital flows with a wider geographical spread of investment activities and investor types. In the case of New York and Tokyo, these markets appear to be driven by more domestic investment activity and capital seemingly due to subtle factors pertaining to investor home bias, risk aversion and diversification strategies between the markets in the aftermath of the GFC.Originality/valueGiven the importance of the CBD offices in London, New York and Tokyo as an asset class for institutional investors, this paper provides some insights as to their level of connection and the interaction of the international capital flows into these three major cities.