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Can Large Economies Drive International Real Estate Markets?

Author/s: Patrick Wilson, Ralf Zurbruegg

Date Published: 1/01/2003

Published in: Volume 9 - 2003 Issue 4 (pages 379 - 397)

Abstract

There is continuing interest in the inter-relationships among real estate markets. This includes research suggesting that international linkages in real estate market returns are partly driven by the inter-relatedness between changes in local GDP and ‘world’ GDP. The current study continues this line of inquiry by examining securitised real estate market integration among six economies. By investigating long-run trends, this study suggests that not only are international real estate markets inter-linked, but that some large economies, such as the US and Japan, may have a significant influence over smaller markets. This in turn provides information that can be utilized by property investment managers for asset allocation and design.

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Keywords

Economic Growth - Integration - International Real Estate Markets

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