Real estate investment in global financial centers: risk, return and contagion
Lizieri, C., (2009) Real estate investment in global financial centers: risk, return and contagion. Working Papers in Real Estate & Planning. 11/09. Working Paper. University of Reading, Reading. pp23.
Global financial activity is heavily concentrated in a small number of world cities –international financial centers. The office markets in those cities receive significant flows of investment capital. The growing specialization of activity in IFCs and innovations in real estate investment vehicles lock developer, occupier, investment, and finance markets together, creating common patterns of movement and transmitting shocks from one office market throughout the system. International real estate investment strategies that fail to recognize this common source of volatility and risk may fail to deliver the diversification benefits sought.