Journal of European Real Estate Research最新文献

{"title":"Real estate development in the city of Athens during the financial crisis","authors":"Maria Nikitidou, F. Archontakis, Athanasios Tagkalakis","doi":"10.1108/JERER-09-2020-0051","DOIUrl":"https://doi.org/10.1108/JERER-09-2020-0051","url":null,"abstract":"\u0000Purpose\u0000This study aims to determine how the prices of residential properties in the Greek real estate sector are affected by their structural characteristics and by the prevailing economic factors during recession.\u0000\u0000\u0000Design/methodology/approach\u0000Based on 13,835 valuation reports for the city of Athens, covering a period of 11 years (2006–2016), this study develops a series of econometric models, taking into account both structural characteristics of the property market and the macroeconomic relevant variables. Finally, the city of Athens is divided into sub-regions and the different effects of the structural factors in each area are investigated via spatial analysis confirming the validity of the baseline model.\u0000\u0000\u0000Findings\u0000Findings show that the size, age, level, parking and storage space can explain the property price movements. Moreover, the authors find evidence that it is primarily house demand variables (e.g. the annual average wage, the unemployment rate, the user cost of capital, financing constraints and expectations about the future course of the house market) that affect house prices in a statistically significant manner and with the correct sign. Finally, using a difference-in-differences approach, this study finds that an increase in house demand (on account of net migration) led to higher house prices in smaller and older than in larger and younger apartments in areas with high concentration of immigrants.\u0000\u0000\u0000Originality/value\u0000This study uses a novel data set to help entities, individuals and policy-makers to understand how the recent economic and financial crisis has affected the real estate market in Athens.\u0000","PeriodicalId":44570,"journal":{"name":"Journal of European Real Estate Research","volume":"611 1","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-06-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"77357411","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Aggressive bidding strategies in real estate auctions – a structural equation modelling (SEM) approach","authors":"Simen Dalland, R. Hammervold, Henrik Tangen Karlsen, A. Oust, Ole Jakob Sønstebø","doi":"10.1108/JERER-09-2020-0049","DOIUrl":"https://doi.org/10.1108/JERER-09-2020-0049","url":null,"abstract":"\u0000Purpose\u0000This paper aims to study aggressive bidding strategies in real estate auctions – a structural equation modelling (SEM) approach.\u0000\u0000\u0000Design/methodology/approach\u0000The authors use two data sets to study aggressive bidding strategies. First, the results from a survey with 1,803 participants examining real estate auctions are used to identify bidding strategies and related motivations. Second, the authors apply SEM by using data from 1,078 exclusive auction journals from real estate sales in Norway to study both the direct and indirect price effects of the bidding strategies.\u0000\u0000\u0000Findings\u0000The authors define four aggressive bidding strategies: high opening bid, high bid increase (jump bids), short acceptance deadline and short response time. The authors find that all four strategies yield a higher sales price. Bidders can actively influence the behaviour of the other participants and cool the potential auction fever, thus reducing the final price premium.\u0000\u0000\u0000Originality/value\u0000This paper gives households, investors and policymakers a better understanding of how bidding strategies affect real estate auctions and the final price.\u0000","PeriodicalId":44570,"journal":{"name":"Journal of European Real Estate Research","volume":"19 1","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-05-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81847640","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Inhibitors and facilitators of corporate real estate dynamic alignment","authors":"H. Cooke, R. Appel-Meulenbroek, T. Arentze","doi":"10.1108/JERER-08-2020-0048","DOIUrl":"https://doi.org/10.1108/JERER-08-2020-0048","url":null,"abstract":"\u0000Purpose\u0000This paper aims to identify the importance of individual variables in the corporate real estate (CRE) decision-making process.\u0000\u0000\u0000Design/methodology/approach\u0000Nine experts received a posed scenario of a changed business strategy requiring a CRE reduction in individual interviews. Based on their suggested response, a decision network was modelled for each expert using the causal network elicitation technique, incorporating the utilities for decision variables and importance weights for attributes and benefits. The decision model offers a graphical representation of decision-benefit links for the decisions CRE managers make in such a period of decline.\u0000\u0000\u0000Findings\u0000Perceived facilitators of CRE dynamic alignment were identified by calculating lift ratios on their perceived importance of the attributes they mentioned during the interviews as nodes in the network that link decisions to benefits. Facilitators included CRE metrics and workplace strategy, while capital expenditure and landlords inhibit alignment processes. The research provides more granular insight into the variables used in CRE decision-making and the factors that facilitate or inhibit the dynamic alignment process.\u0000\u0000\u0000Research limitations/implications\u0000The research set a specific scenario for the experts to consider. That could be regarded as small but there was clear evidence of saturation of expert knowledge. Additional face-to-face interviews with the experts may have generated further details on the thought processes of the experts.\u0000\u0000\u0000Practical implications\u0000The research provides more granular insight into the variables used in CRE decision-making and the factors that facilitate or inhibit the dynamic alignment process. Thereby providing CRE decision-makers with key elements for a decision model.\u0000\u0000\u0000Originality/value\u0000The research technique, causal network elicitation technique, uses semi-structured interviews to create decision networks, which is a technique that has not been widely applied to CRE research. The research provides a granular view of what are important inhibitors or facilitators of dynamic alignment of CRE to business strategy.\u0000","PeriodicalId":44570,"journal":{"name":"Journal of European Real Estate Research","volume":"15 1","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-05-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"78275414","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The Mortensen-Pissarides model and the empirical facts of housing markets","authors":"Gaetano Lisi","doi":"10.1108/JERER-07-2020-0044","DOIUrl":"https://doi.org/10.1108/JERER-07-2020-0044","url":null,"abstract":"\u0000Purpose\u0000This paper aims to explain the main empirical facts of housing markets, notably the trade-off between housing price and time-on-the-market, the positive correlation between housing price and the number of contracts traded during a given period (i.e. the trading volume) and the existence of price dispersion.\u0000\u0000\u0000Design/methodology/approach\u0000This theoretical paper makes use of a search and matching model. Search and matching, indeed, are two fundamental characteristics of the trading process in the housing market, and, thus, the search-and-matching models have become the new economic approach to the analysis of real estate markets.\u0000\u0000\u0000Findings\u0000This paper shows that a slightly modified version of the baseline search and matching model à la Mortensen-Pissarides can explain the main empirical facts of housing markets. There are two key mechanisms that allow to achieve this notable goal: a simple formalisation of the (reasonable) assumption that buyers today are potential sellers tomorrow (and vice versa); and the direct relationship between market tightness and house price, derived by the standard matching model and underestimated by the related literature.\u0000\u0000\u0000Research limitations/implications\u0000The developed theoretical model only studies the equilibrium conditions. Indeed, it would be interesting to also study the disequilibrium in housing markets.\u0000\u0000\u0000Practical implications\u0000The explanation of the main empirical facts of housing markets is embodied in the same and relatively simple theoretical model.\u0000\u0000\u0000Originality/value\u0000In addition to the explanation of the main empirical facts of housing markets, the developed theoretical model can generate an upward sloping Beveridge curve in the housing market (the positive relation between home-seekers and vacant houses). Instead, according to a recent criticism in the related literature, a model à la Mortensen-Pissarides inherently generates a (empirically unrealistic) downward sloping Beveridge curve.\u0000","PeriodicalId":44570,"journal":{"name":"Journal of European Real Estate Research","volume":"42 1","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-05-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89792109","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Performance determinants of European private equity real estate funds","authors":"G. Morri, U. Perini, Rachele Anconetani","doi":"10.1108/JERER-04-2020-0025","DOIUrl":"https://doi.org/10.1108/JERER-04-2020-0025","url":null,"abstract":"\u0000Purpose\u0000The paper aims to investigate the performance determinants of European non-listed private equity real estate funds between 2001 and 2014.\u0000\u0000\u0000Design/methodology/approach\u0000Using a sample of 363 funds collected from the Inrev database, the analysis evaluated the impact of fees and other intrinsic characteristics of these funds, such as leverage, size and duration, on the funds’ performance, intending to enhance the understanding underlying their relationship.\u0000\u0000\u0000Findings\u0000The findings show a negative relationship between the return of the funds and redemption fee, performance fee and management fee. Conversely, marketing fees have a positive effect on performance. When analyzing the investment style, the results reveal inhomogeneous behaviors of leverage on funds’ performance. This variable has a positive impact on the return in core funds, while there is a negative relationship in value-added investments. Finally, the emphasis on the global financial crisis shows that the effects of the independent variables on the performance do not significantly change in different economic cycles.\u0000\u0000\u0000Practical implications\u0000The practical implication of the research is to understand whether an investor can direct its resources in a fund, leveraging on certain intrinsic characteristics that can be observed a priori.\u0000\u0000\u0000Originality/value\u0000Even if there is a considerable body of literature on determinants of performance in European non-listed real estate funds, little research has analyzed the role of fees in driving their results. Besides, this paper takes advantage of observations from different investment styles to emphasize the impact of higher or lower risk profiles and from the full economic cycle to understand the effects of the crisis period.\u0000","PeriodicalId":44570,"journal":{"name":"Journal of European Real Estate Research","volume":"46 1","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-05-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88557408","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Advancing futures thinking in the real estate field","authors":"S. Toivonen","doi":"10.1108/JERER-01-2020-0003","DOIUrl":"https://doi.org/10.1108/JERER-01-2020-0003","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to study the user experiences of the futures wheel method to investigate its suitability to advance futures thinking in the real estate field.\u0000\u0000\u0000Design/methodology/approach\u0000The user experiences of the futures wheel method are investigated through questionnaire answers of 114 master’s level students and real estate experts taking part in future wheel workshops.\u0000\u0000\u0000Findings\u0000The futures wheel method could enhance future-oriented thinking and decision-making in the real estate field. The respondents see futures thinking as an important skill and recognize several advantages concerning the method.\u0000\u0000\u0000Practical implications\u0000The futures wheel method bears great potential to be used in the real estate sector and it could be a fruitful addition to the curriculums at different education levels in real estate studies.\u0000\u0000\u0000Social implications\u0000Futures thinking is essential when aiming for sustainable decisions in the real estate field which again would benefit the whole surrounding society.\u0000\u0000\u0000Originality/value\u0000This paper is the first published paper concentrating on the user experiences of the future wheel method in the real estate sector. The benefits and the disadvantages of the method are investigated but also the attitudes indicating the potential of the method to be successfully adopted in the field are analyzed.\u0000","PeriodicalId":44570,"journal":{"name":"Journal of European Real Estate Research","volume":"11 1","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-03-22","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"88709157","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"The resilience and realignment of house prices in the era of Covid-19*","authors":"John V. Duca, Martin Hoesli, Joaquim Montezuma","doi":"10.1108/JERER-11-2020-0055","DOIUrl":"https://doi.org/10.1108/JERER-11-2020-0055","url":null,"abstract":"Purpose: \u0000The article analyzes the effects of the COVID-19 pandemic on house prices. \u0000 \u0000Design/Methodology/Approach: \u0000We start by discussing the possibility that house price indexes may not fully incorporate the effects of the pandemic as of yet. Against the background of the pandemic, we then analyze economic and behavioral effects affecting house prices. We also discuss how the linkages between tourism and house prices have been affected. We further present evidence of an emerging shift in preferences from urban locations to more peripheral ones. \u0000 \u0000Findings: \u0000We report variance in the evolution of house prices across countries at the onset of the pandemic, with locations depending heavily on tourism showing slower price appreciation while appreciation has firmed in other places. We argue that the resilience of house prices is due not only to the low interest rate environment and government efforts to support firms and households, but also behavioral factors. In some locations, the price of condominiums has declined relative to the price of detached houses. This could indicate that wealthier households are seeking more space and larger units as a result of the crisis. There is also evidence of a downward pressure on rents, leading to increased price-rent ratios in the U.S. \u0000 \u0000Originality/Value: \u0000By considering both economic and behavioral factors, this paper provides for a better understanding of the resilience and realignment of house prices at the onset of the COVID-19 pandemic.","PeriodicalId":44570,"journal":{"name":"Journal of European Real Estate Research","volume":"6 1","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-02-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"86308025","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Lifting the lid on the black box of corporate real estate decision-making; dealing with surplus property","authors":"H. Cooke, R. Appel-Meulenbroek, Theo Arentz","doi":"10.1108/JERER-05-2020-0029","DOIUrl":"https://doi.org/10.1108/JERER-05-2020-0029","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to identify the variables that influence corporate real estate (CRE) decision-making and gauge their relative importance to each other, thereby understanding the consequent challenges/implications for CRE managers (CREM’s).\u0000\u0000\u0000Design/methodology/approach\u0000Interviews were undertaken with experienced CREM’s using the causal network elicitation technique to create decision networks for the variables they considered for the specifically defined scenario: dealing with surplus property from a change of business strategy. These networks illustrate the complexity of the mental representations required for the realignment of the CRE portfolio. The key variables are more extensive than alignment theory suggests, namely, financial stakeholders. Additional variables identified include risk, lease accounting, costs, financial analysis, business metrics and motivational drivers. The latter indicates the importance of self-esteem and peer recognition for CREM’s and financial benefits for the C-suite. Accordingly strategy alignment needs to incorporate CRE both in terms of strategy creation and implementation.\u0000\u0000\u0000Findings\u0000These networks illustrate the complexity of the mental representations required for the realignment of the CRE portfolio. The key variables are more extensive than alignment theory suggests, namely, financial stakeholders. Additional variables identified include risk, lease accounting, costs, financial analysis, business metrics and motivational drivers. The latter indicates the importance of self-esteem and peer recognition for CREM’s and financial benefits for the C-suite. Accordingly, strategy alignment needs to incorporate CRE both in terms of strategy creation and implementation.\u0000\u0000\u0000Originality/value\u0000This research appears to be the first that looks in detail at the mental representations used by decision-makers while making CRE decisions.\u0000","PeriodicalId":44570,"journal":{"name":"Journal of European Real Estate Research","volume":"5 1","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-02-06","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"81974515","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"An analysis of papers published in the Journal of European Real Estate Research, 2008-2019","authors":"Martin Hoesli","doi":"10.1108/JERER-04-2020-0027","DOIUrl":"https://doi.org/10.1108/JERER-04-2020-0027","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to analyze papers that have been published in the Journal of European Real Estate Research since its inception in 2008.\u0000\u0000\u0000Design/methodology/approach\u0000The author analyzes papers published from 2008 to 2019 in the Journal of European Real Estate Research by authors’ country of affiliation, by country of study and by theme.\u0000\u0000\u0000Findings\u0000The Journal of European Real Estate Research publishes papers from scholars from an increasing number of countries, in particular in Central and Eastern Europe. Papers that provide a comparative analysis of countries constitute the largest category of contributions. The three most popular themes remain housing, valuation and investment/portfolio management. However, the dynamics of the three categories differ notably.\u0000\u0000\u0000Originality/value\u0000This paper provides for a clearer understanding of key dimensions of real estate research in Europe.\u0000","PeriodicalId":44570,"journal":{"name":"Journal of European Real Estate Research","volume":"13 1","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-01-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89909405","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}

{"title":"Location, location, location!*: a quality-adjusted rent index for the Oslo office market","authors":"A. Anundsen, Christian Bjørland, Marius Hagen","doi":"10.1108/jerer-02-2021-0009","DOIUrl":"https://doi.org/10.1108/jerer-02-2021-0009","url":null,"abstract":"PurposeCommonly used rent indices are based on average developments or expert opinions. Such indices often suffer from compositional biases or low data coverage. The purpose of this paper is to overcome these challenges using the authors' approach.Design/methodology/approachThe authors construct a quality-adjusted rent index for the office market in Oslo using detailed data from 14,171 rental contracts.FindingsThe authors show that compositional biases can have a large impact on rental price developments. By adding building-fixed effects to a standard hedonic regression model, the authors show that the explanatory power increases considerably. Furthermore, indices excluding location-specific information, or which include less granular location controls than at the building level, portray quite a different picture of rent developments than indices that do take this into account. The authors also exploit information on contract signature date and find that a more timely detection of turning points can be achieved by using the signature date instead of the more typically used start date of the lease.Research limitations/implicationsThe study is confined to Norwegian data, and an avenue for future research would be to explore if similar results are obtained for other countries. A weakness with the paper is that authors' do not observe quality changes over time, such as renovation. Controlling for time-varying and unit-specific attributes in hedonic models for the commercial real estate (CRE) market would be useful to purge indices further for compositional effects and unobserved heterogeneity. While the authors do control for building-fixed effects, there are additional variations within a building (floor, view, sunlight, etc.) that the authors do not capture. Studies that could control for this would certainly be welcome, both in order to estimate the value of such amenities and to see how it affects estimated rent developments. Another promising avenue for future research is to link data on rental contracts in the CRE market with firm-specific information in order to explore how firm profitability and liquidity may affect rental contracts.Practical implicationsThe authors show that the hedonic index yields a sharper fall in rents after the global financial crisis and more muted developments in the period between 2013 and 2015 than the average rent index. The results show that rents have followed their estimated equilibrium closely and have re-adjusted quickly in periods of deviation. From a financial stability perspective, the risk of a sharp fall in rents is reduced because rents often are in line with their fundamentals.Social implicationsThe authors find that a more timely detection of turning points can be achieved by using information on the signature date. This is an important finding. The financial system is heavily exposed toward CRE, and timely detection of turning points is critical for policymakers.Originality/valueThe financial system i","PeriodicalId":44570,"journal":{"name":"Journal of European Real Estate Research","volume":"1 1","pages":""},"PeriodicalIF":1.3,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"89638003","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}