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A long-run study of real estate risk and return

Long run study or real estate: modern colorful complex of apartment buildings

About

This project on real estate risk and return draws on the experience of real estate finance and financial history and makes a contribution to the understanding of the long-run performance characteristics of real estate, putting this asset class on a level playing field with stocks, bonds and collectibles where comprehensive long-run performance data already exist.

Property is a major asset class in institutional investment portfolios alongside stocks and bonds. However, in contrast to those assets, there is little empirical evidence on the long-run risk and return characteristics of property. The objective of this project is to construct a novel and unique data set on investment properties in the UK held by long-term institutional investors and to analyse its long-run performance. 

The project is led by Dr David Chambers (University of Cambridge) and Dr Eva Steiner (Cornell University). It has attracted £100k of funding including from the Isaac Newton Trust, St John’s College Cambridge, the Cambridge Endowment for Research in Finance and an individual donor.