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Journal of European Real Estate Research
Journal Prestige (SJR): 0.268  Citation Impact (citeScore): 1 Number of Followers: 5  Hybrid journal * Containing 1  Open Access article(s) in this issue *ISSN (Print) 1753-9269 - ISSN (Online) 1753-9277 Published by Emerald  [362 journals]
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- Commercial real estate prices in Europe after COVID-19
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Authors: Martin Hoesli, Richard Malle
Abstract: The article aims to analyze the behavior of commercial real estate prices in Europe, with a focus on the post-coronavirus disease 2019 (COVID-19) pandemic period. The authors use national and city-level data for the various commercial real estate sectors in ten countries, as well as listed real estate data, to assess any differences across property type and space. The authors analyze the behavior of commercial real estate prices after the COVID-19 pandemic, emphasizing differences across property types. For that purpose, the authors use national and city-level direct real estate data for the ten largest countries in terms of market capitalization, as well as listed real estate data. The article then turns to discussing the likely trajectory of commercial real estate prices in the future. The recent rise in interest rates and geopolitical instability have affected prices differently across sectors. Industrial properties benefited from the pandemic, although prices declined significantly in 2022. Residential properties continued their upward price trend and have been the best-performing property type during the last two decades. Retail real estate continued its downward price trajectory. Thus far, office markets do not appear to be significantly affected by structural changes in the sector. The data for listed real estate markets in Europe suggest that markets bottomed out in early 2023. This paper provides for a better understanding of the behavior of commercial real estate prices in Europe since the COVID-19 pandemic. The authors assess whether the effects found during the COVID-19 crisis were temporary or long-lasting. Also, many economic and political uncertainties have emerged since the beginning of the Ukraine war in February 2022, and it is important to analyze the effects of such uncertainties on commercial real estate prices.
Citation: Journal of European Real Estate Research
PubDate: 2023-11-17
DOI: 10.1108/JERER-09-2023-0031
Issue No: Vol. ahead-of-print, No. ahead-of-print (2023)
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- International diversification and European firm value: the role of
operating efficiency
Open Access Article-
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Authors: Islam Ibrahim, Heidi Falkenbach
Abstract: This study aims to investigate the impact of international diversification on the value and operating efficiency of European real estate firms. The study is conducted using a panel fixed effects regression model to estimate the relationship of international diversification with firm value and operating efficiency. International diversification is mainly measured via the negative of the Herfindahl–Hirschman Index (HHI) using property-level data. Firm value and operating efficiency are proxied by financial ratios observed annually from 2002 to 2021 at the firm level. The results demonstrate that international diversification has a negative effect on firm value. Additionally, it lowers operating efficiency by weakening a firm's ability to generate operating earnings from its assets. By examining whether the reduction in operating efficiency is due to the rental income channel or the capital gains channel, the authors find strong statistical evidence that international diversification negatively impacts capital gains. International diversification is negatively associated with net gains from property valuations (unrealized capital gains) and net profits from property disposals (realized capital gains). The empirical analysis is limited to Europe. This paper extends the geographical diversification literature. While existing literature focuses on domestic diversification within the United States, this paper explores the effects of international diversification on European real estate firms. To the extent of the authors' knowledge, this is the first paper to examine the impact of geographical diversification on capital gains.
Citation: Journal of European Real Estate Research
PubDate: 2023-11-09
DOI: 10.1108/JERER-07-2023-0025
Issue No: Vol. ahead-of-print, No. ahead-of-print (2023)
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- The underestimated global warming potential of refrigerant losses in
retail real estate: the impact of CO2 vs CO2e-
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Authors: Chiara Kuenzle, Julia Wein, Sven Bienert
Abstract: This paper investigates the impact of CO2 vs CO2 “equivalents” (CO2e) by analyzing fugitive emissions, with a particular focus on Fluorinated gases (F-gases), arising from refrigerant leakages in buildings. F-gases are an especially powerful set of GHGs with a global warming potential hundreds to thousands of times greater than that of CO2. The significant impact of CO2e is tested by means of an empirical study with current consumption data from German food retail warehouses. This evaluation involves the analysis of the Carbon Risk Real Estate Monitor's country- and property-type specific pathway, coupled with a paired samples t-test to examine the hypotheses. The assessment is undertaken by evaluating the type of gas and the amount of leakage reported in the baseline year, subsequently converting these values to CO2e units. On average, F-gases account for 40% of total building emissions and nearly 45% of cumulative emissions until 2050. In light of ongoing climate change and the rising number of Cooling Degree Days (CDDs), it becomes imperative to assess both the environmental and economic impact of F-gases and to transition toward environmentally friendly refrigerants. The analysis sheds light on the seldom-addressed threats posed by CO2e emissions stemming from refrigerant losses. By identifying these threats, investors can devise strategies to mitigate potential future costs and carbon risks.
Citation: Journal of European Real Estate Research
PubDate: 2023-10-27
DOI: 10.1108/JERER-06-2023-0021
Issue No: Vol. ahead-of-print, No. ahead-of-print (2023)
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- A reconceptualisation of the housing cycle based
on household upgrading desires-
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Authors: Colin Jones
Abstract: The paper sets out a conceptualisation of the housing cycle centring on households' desire to upgrade their housing consumption. The paper begins by studying house price trends and cycles in OECD countries since 2000 to identify housing cycle patterns. It then assesses existing theories partly in relation to these patterns. It then proposes a new conceptualisation of the housing cycle. The paper finds the central role of supply lags in housing cycles is not warranted. Instead, a demand cycle generated by upgrading desires better explains an initial boom followed by a slow recovery. The paper challenges existing orthodoxy on housing cycle dynamics and proposes an alternative perspective.
Citation: Journal of European Real Estate Research
PubDate: 2023-10-19
DOI: 10.1108/JERER-11-2022-0037
Issue No: Vol. ahead-of-print, No. ahead-of-print (2023)
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- Choosing annuities for a home reversion: the case of the French viager
market-
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Authors: Jean-Baptiste Coulomb, Fabrice Larceneux, Arnaud Simon
Abstract: The authors analyzed annuitization preferences when retired people extract cash from their homes. Based on 2,608 viager (home reversion) transactions, the authors study the relations between annuitization, negotiation, cash extraction, age, gender and marital status. A database comprising 2,608 transactions is used. The three-stage least squares (3SLS) and moderation models are implemented, with a focus on potential adverse selection issues. The authors found that difficulties in selling a property generally result in increased annuitization. The single men's group endures gender inequality, suffering from limitations in their possibility to extract wealth and annuitize, as well as an additional price discount during negotiation. Young single men, as compared to young single women and young couples, must consent to a substantial price reduction if they prefer a high down payment and limited price reductions if they prefer annuities. Elderly single men, as compared to young single men, have less capacity to negotiate, a concern that is reinforced when they prefer annuities. Among the home equity conversion products, the academic real estate literature has intensely analyzed the reverse mortgage. The viager is distinct from a mortgage in that it consists of the true sale of a property without bank involvement. This product deserves reinforced attention in an aging continental Europe. It exists in numerous countries (France, Belgium, Germany, Italy, Spain, etc.).
Citation: Journal of European Real Estate Research
PubDate: 2023-09-05
DOI: 10.1108/JERER-01-2023-0004
Issue No: Vol. ahead-of-print, No. ahead-of-print (2023)
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- Recycling English town centres – from retail to healthcare: surveys,
views and next steps-
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Authors: Grazyna Aleksandra Wiejak-Roy, Gavin Hunter
Abstract: Many town centres in England exhibit high retail property vacancies and require regeneration. Several alternatives for the replacement of town centre retail (TCR) have been suggested, one of which is healthcare. The healthcare sector in England is in distress, with the National Health Service (NHS) tackling extensive patient waiting lists, whilst operating from an ageing estate. This paper is an introductory study that uses seven carefully selected personalised surveys to raise academic awareness of the importance and potential of integrating healthcare into town centres and calls for large-scale research to establish the statistical validity of the reported observations. This study is developed from an interpretative standpoint. Through semi-structured interviews with key stakeholders specific to retail-to-healthcare conversions, this study reports stakeholders' perspectives on opportunities and limitations for such conversions to give direction for large statistical research in the future. All participants support the integration of healthcare into town centres and agreed that diagnostic services, mental health support and primary care services are appropriate for provision within town centres. The participants advocate large-scale change in town centres in England, with integrated healthcare co-located with complementary services to fit with wider regeneration plans. Participants prefer adaptation of existing buildings where technically feasible and emphasise the importance of obtaining the buy-in of other stakeholders whilst expressing concerns about the uncertainty of capital funding availability. This is the first study to analyse the practice of retail-to-healthcare conversions in town centres. These are still rare in England and projects are complex. The market experience is limited, and thus, the literature is scarce. This study fills this void and provides a starting point for future quantitative research in this area and informs the new town-planning policies.
Citation: Journal of European Real Estate Research
PubDate: 2023-07-11
DOI: 10.1108/JERER-01-2023-0002
Issue No: Vol. ahead-of-print, No. ahead-of-print (2023)
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- Editorial: The asymmetry of real estate market responses
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Authors: Paloma Taltavull
Abstract: Editorial: The asymmetry of real estate market responses
Citation: Journal of European Real Estate Research
PubDate: 2023-11-24
DOI: 10.1108/JERER-12-2023-072
Issue No: Vol. 16, No. 3 (2023)
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