RT Journal Article
SR Electronic
T1 Benefits of Real Estate Investment
JF The Journal of Portfolio Management
FD Institutional Investor Journals
SP 28
OP 33
DO 10.3905/jpm.2003.319903
VO 29
IS 5
A1 Georgi Georgiev
A1 Bhaswar Gupta
A1 Thomas Kunkel
YR 2003
UL https://pm-research.com/content/29/5/28.abstract
AB 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 that are fixed at a location and 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. Furthermore, the lack of frequent transaction data for the analysis of return distributions often necessitates the use of appraisal-based series. In this article, the authors examine the benefits of real estate investments as part of an investor's overall asset portfolio.