Is e-commerce an investment risk priced by retail real estate investors? An investigation

2021 ◽  
pp. 1-18
Author(s):  
Carina Kaiser ◽  
Julia Freybote
Keyword(s):  
Real Estate ◽  
Investment Risk

Undivided Real Estate Shares: Appraisal and Interactions with Capital Markets

2014 ◽  
Vol 584-586 ◽  
pp. 2522-2527 ◽  
Author(s):  
Vincenzo del Giudice ◽  
Pierfrancesco de Paola
Keyword(s):  
Real Estate ◽  
Capital Asset Pricing ◽  
Investment Risk ◽  
Capital Asset ◽  
Real Estate Investment ◽  
The Real Estate ◽  
Asset Pricing Model ◽  
Penalized Spline ◽  
Semiparametric Method ◽  
Risk Valuation

The appraisal of undivided and indivisible real estate shares represents a recurring and underestimated issue by professional appraisers. This problem requires a logical solution considering that the undivided real estate shares are more difficult to sell and, consequently, there is a decrease of their market value. It follows that issue can be referred, in theoretical and practical terms, to the real estate investment risk valuation and on how to convert this risk into an expected rate that can compensate it. In this paper theCapital Asset Pricing Modelhas been integrated withPenalized Spline Semiparametric Methodin order to obtain an algorithm that allows to rationalize the appraisal of undivided real estate shares using easily accessible data.

scholarly journals Market heterogeneity, investment risk and portfolio allocation

2017 ◽  
Vol 10 (5) ◽  
pp. 641-661
Author(s):  
Charles-Olivier Amédée-Manesme ◽  
Michel Baroni ◽  
Fabrice Barthélémy ◽  
François Des Rosiers
Keyword(s):  
Real Estate ◽  
Quantile Regression ◽  
Efficient Frontier ◽  
Portfolio Allocation ◽  
Individual Investors ◽  
Investment Risk ◽  
Content Type ◽  
Management Context ◽  
Housing Attributes ◽  
Real Estate Assets

Purpose The purpose of this paper is to address the heterogeneity of real estate assets with regard to investment risk measurement, with Paris’ apartment market as a case study. Design/methodology/approach Quantile regression is used to handle the fact that willingness to pay for housing attributes may vary greatly over both space and asset value categories. The method is alternately applied on central and peripheral districts of Paris, or “arrondissements”, with hedonic indices built for nine deciles over a 17-year period (1990-2006). Portfolio allocation is subsequently analysed with deciles being the assets. Findings The findings suggest that during the slump, peripheral districts show better resilience and define the efficient frontier while also exhibiting a lower volatility. In addition, higher returns are observed for lower-priced apartments, both central and peripheral. During the recovery and boom stages of the cycle, the highest returns are experienced for the cheapest apartments in central locations, whereas upper-priced, centrally located units yield the lowest returns. Originality/value The originality of this research resides in the application of quantile regression in a real estate investment and risk management context. The methodology may raise individual investors’ and practitioners’ attention, especially index providers’.

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