Institutional Perspectives on Real Estate Investing: The Role of Risk and Uncertainty

Ravi Dhar and William Goetzmann

Yale School of Management Working Papers from Yale School of Management

Abstract: In this paper we address the factors influencing the institutional decision to allocate resources to real estate. We survey a sample of major institutional investors via a web questionnaire. They were willing to answer questions about their target real estate allocation, their plans to increase or decrease their allocation, the major reasons for investing in real estate, and views on the major risks and relative expense of doing so. We find that the endowments in our sample typically had a relatively short history of real estate investment, but planned to increase their allocation to the asset class - more so than pension funds. We also find uncertainty about use of historical data to be a significant factor in the allocation choice.

Keywords: Behavioral Finance; real estate; investing; risk; uncertainty (search for similar items in EconPapers)
Date: 2005-06-01, Revised 2005-07-01
New Economics Papers: this item is included in nep-cfn, nep-fin, nep-fmk and nep-pke
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Citations: View citations in EconPapers (10)

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Persistent link: https://EconPapers.repec.org/RePEc:ysm:somwrk:ysm457

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