Determinants of Foreign Versus Domestic Real Estate Investment: Property Level Evidence from Listed Real Estate Investment Firms

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• 作者：Nathan Mauck ; S. McKay Price
• 关键词：Real estate investment ; International real estate ; International finance ; Foreign investment
• 刊名：The Journal of Real Estate Finance and Economics
• 出版年：2017
• 出版时间：January 2017
• 年：2017
• 卷：54
• 期：1
• 页码：17-57
• 全文大小：
• 刊物类别：Business and Economics
• 刊物主题：Regional/Spatial Science; Financial Services;
• 出版者：Springer US
• ISSN：1573-045X
• 卷排序：54

文摘

We examine the determinants of foreign real estate investment relative to the domestic case using the portfolios of a large sample of publicly traded real estate investment companies; where foreign investment is defined as the property owner headquarters being located in a different country than a given asset. The cross-sectional results provide strong evidence that real estate firms are more likely to take a smaller stake in larger assets when investing abroad. The penchant for large assets holds when controlling for economic activity, real estate investment opportunities, depth and sophistication of the capital markets, investor protection and the legal framework, administrative burdens and regulatory limitations, and the socio-cultural and political environment at both the property nation and headquarter nation levels. In general, foreign ownership is less likely with industrial, office, retail, and self-storage properties. Capital market development is consistently negatively related to foreign investment.