[go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/arz/wpaper/eres2007_366.html
   My bibliography  Save this paper

Yield Floors, Yield Determination and Yield Harmonisation

Author

Listed:
  • Tony McGough
  • Fergus Hicks
Abstract
Real estate yields have been tightening considerably in the last few years, particularly within Central Europe. Yields are a significant factor concerning total returns, and consequently there has been a series of years showing well above average returns, based on capital growth. It is common now to find markets where property yields are below bond yields. Real estate yields have been driven down by the continued ëwall of moneyí and investor sentiment, over and above any economic fundamentals. Calculating and understanding the fundamentals behind the yield determinants has rarely been attempted even though the construction of models that track the historical variation in property yields improves our understanding of the determinants of yields and provides the basis for their forecasting. Current work in Europe has paid little attention to the empirical investigation of yield movements. A UK study by Tsolacos, Keogh and McGough (1998) modelled yields but the authors identified significant econometric difficulties compared with the modelling of rents and new construction. The US literature has examined this issue in more detail. A number of studies have provided significant insight on the determination of yields and the relative importance of real estate and capital market factors e.g. Sivitanidou and Sivitanides, 1999. Building on past work this paper will be analysing the harmonising impact of the European Union on the main drivers to yields. It will consider the impact of recent major yield shifts in this relationship and consider whether the new position is a sustainable new base for yields or a short term phenomenon.

Suggested Citation

  • Tony McGough & Fergus Hicks, 2007. "Yield Floors, Yield Determination and Yield Harmonisation," ERES eres2007_366, European Real Estate Society (ERES).
    • Handle: RePEc:arz:wpaper:eres2007_366
    as

    Download full text from publisher

    File URL: https://eres.architexturez.net/doc/oai-eres-id-eres2007-366
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Colin A. Jones, 2009. "Remaking the Monopoly Board: Urban Economic Change and Property Investment," Urban Studies, Urban Studies Journal Limited, vol. 46(11), pages 2363-2380, October.

    More about this item

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arz:wpaper:eres2007_366. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Architexturez Imprints (email available below). General contact details of provider: https://edirc.repec.org/data/eressea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.