Real estate investment indices in Japan and their role in optimal international portfolio allocation

It has been said that "home bias" exists among investors due to informational disadvantage involved in cross-border investment. But, real estate has become a major asset class and cross-border real estate investment has been surging. Behind this phenomenon is heightened awareness among investors of the modem portfolio theory and the benefits of diversification. Japan is not an exception. Since late 1990's, a large amount of capital has flowed into Japanese real estate markets. The markets have also experienced significant transformation. However, in the eyes of foreign investors they are far from transparent due to, among other things, lack of reliable investment indices of commercial real estate. Such indices cannot be generated overnight, and lack of such indices can be a critical issue for global real estate investors. This issue is contributing to under-investment in Japan's real estate from overseas. Facing this problem, researchers and industry practitioners launched a number of investment indices for private real estate in recent years, each of which has strong and weak points. Compared to other indices, the ARES J-REIT Property Index seems potentially the most reliable and promising index for Japanese commercial real estate.

Department dc:contributor.department

Massachusetts Institute of Technology. Dept. of Urban Studies and Planning.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2006

Author dc:creator

• Endo, Takashi, S.M. Massachusetts Institute of Technology

Advisor dc:contributor.advisor

• David Geltner.

• Urban Studies and Planning.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/37431
• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Identifier URI

http://dspace.mit.edu/handle/1721.1/37431

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/37431