Suchergebnisse

"The financial deregulation of the last quarter century has meant large flows of funds around the world seeking the highest risk-adjusted return for investors. Real estate is now established as an important asset class and advances in information technology provide the necessary tools to complement global developments in real estate finance and investment. A variety of investment vehicles have emerged, and Real Estate Finance in the New Economy examines these along with financing and risk in the context of globalization, deregulation and an increasingly integrated international world economy by exploring questions like: How have real estate financial structures evolved as economies grow and become internationalised? What role do economic change and financial systems play in the development of real estate investment? Are the risks associated with the 'new economy'really new? What is the future direction for real estate financing? The authors develop an economic framework for discussions on individual financial products to examine how real estate financial structures change with economic growth and internationalisation and also to show how developments in real estate finance impact economic growth"--Publisher's description.

PurposeThis paper examines the extent of the short-run relationship between Australian real estate investment trusts (A-REITs) and direct real estate returns on both a commercial property sector and a prime and secondary grade basis, i.e. a subsector basis.Design/methodology/approachTwo-step methodology is used. First, we identify the dynamic interdependencies between A-REITs and each commercial property subsector to determine whether the returns of A-REITs lead each subsector or vice versa. Second, short-run deviations between these asset returns are estimated by measuring their individual response behaviours to changes in key economic and financial market factors that are expected to influence these returns.FindingsResults suggest that each subsector shares a unique relationship to A-REITs, given each prime and secondary grade commercial property return series varies in behaviour. Some property subsector returns can be predicted by movements in A-REIT returns, whereas returns for others move independent to changes in A-REITs. Similarly, some subsectors commove with A-REITs in response to changes in certain market factors, whereas others diverge. As such, these findings have practical significance to fund managers and portfolio selection, as each commercial subsector embodies its own exposure to A-REITs and vulnerabilities to market forces. Subsectors that commove with A-REITs in response to certain market forces may be used as substitutes in a portfolio. Alternatively, subsectors that diverge from A-REITs in response to market forces may offer diversification benefits when combined.Practical implicationsThese findings extend beyond existing research to offer critical decision-making guidance at the acquisition level, as fund managers may more closely consider the impact that prime or secondary grade properties within a given commercial sector may have on a portfolio that consists of public and private Australian real estate. Ultimately, a more informed acquisition may be carried out as consideration of a property's asset grade allows for a deeper insight into the property's risk profile and its anticipated short-run impact on a portfolio.Originality/valueThis paper extends previous studies that focus mostly on aggregate or sector-level returns by measuring REIT and real estate dynamics at the subsector level, allowing for practical significance at not only the portfolio level but crucially at the acquisition level, a pivotal decision-making stage for fund managers. This is also the first paper to study REIT and real estate causality and response patterns to changes in market factors at the Australian sector level.

Purpose– There is significant research related to risk and uncertainty in valuation. Risk, in valuation, is mostly communicated to investors in qualitative terms. There has been some research in developed markets to communicate risk quantitatively to clients through property risk scores. However there is paucity of research on communicating risk in emerging markets where the valuation profession is still evolving. Indian property markets have emerged as one the fastest growing markets in the last five years. With the growth in Indian economy and the emergence of indirect property investment market, it is likely that domestic and international passive investors would play an important role in property investment in India. Valuation of assets in portfolio and communication of risk in appropriate way would gain utmost importance. The paper aims to discuss these issues.Design/methodology/approach– This study uses analytical hierarchical process method to quantitatively assess risk to value for office properties in India. This study focuses on identifying principal elements of risk as perceived by key market players in an emerging economy like India. It identifies fundamentals of market, property and lease to determine valuation risk. It may be highlighted here that the risk that this paper is analysing is not the risk that is associated with the valuation for valuer who is conducting valuation but systematic and non-systematic risk associated with property. A two round of survey has been conducted to find various principal elements of valuation risk and sub criteria's through an online survey conducted through survey monkey.Findings– The study found that in an emerging market like India there are limited exit option for developers and investors due to absence of exit vehicle like REITs for office property. Principal element of risk considered is the resale of property, i.e. exit from an investment, followed by tenant and lease specific elements to be other principal elements of risk in the order tenant risk, lock-in duration, functional obsolescence and lease duration. Other market risks like yield movement, rental movement, occupier demand were not considered principal elements of risk.Research limitations/implications– The study could be expanded further by increasing the sample size and as this study demonstrates present market sentiments. Study needs to be updated periodically to retain its practical importance and relevance to the industry.Practical implications– Findings of this study could be used by valuers and investors investing in office properties in India.Originality/value– This is the first paper on risk scoring for commercial properties in the Indian market. It has high importance as Indian market for office space will grow significantly with introduction of REITs.

Issues of housing in India are synonymous with ignorance of housing in active government involvement at the policy and program formulation levels. They are also due to the problems that unplanned urbanization, income disparity, poverty, illiteracy, and unemployment brought. These issues extenuated the housing problem, causing a housing shortage of 51 million in 2011. Though India has a long history of establishing policies, programs, and institutions to cater to housing, without allocating adequate resources, their impact in ameliorating the shortage has been marginal. This paper argues that to address the housing shortage in India, there is desperate need to prepare a framework for housing by (i) including housing as a constitutional right; (ii) resolving issues of unclear land titles and ensuing claims; (iii) building adequate financial resources for affordable housing programs; (iv) building responsive instruments to facilitate the affordability of housing by all income segments; and (v) overcoming market segmentation, which is currently catering to the housing needs of creditworthy clients and is overlooking the growing demand from middle- and lower-income segments. India needs to leverage its extensive architecture of agencies, policies, and market frameworks for housing by equipping them with adequate resources so they can deliver housing for all.