Langkamp, D. R. (2019) Domestic and Foreign Investors in the Residential Real Estate Market - A Quantitative Approach. Master thesis.
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Abstract
The real estate market is becoming more internationally orientated. One of the sectors that attract great interest from foreign investors is the residential market, stimulated by the positive market fundamentals and rental growth perspectives. Prior research showed that distant buyers are often at a disadvantage compared to local buyers. This study expands the literature on the distance effect and addresses the relationship between the investor’s origin and transaction prices.The effect of the investor’s origin is explored by applying multiple linear regression models. This study uses 667 residential investment transactions between 2014-2019, which encompasses 85% of the total residential investment volume in the Netherlands. The results of the multiple linear regressions indicate that foreign investors transact at a premium of respectively 6.7%, 8.4% and 9.2%. The sensitivity analyses provide evidence of a premium by foreign investors and indicate that the founded premiums are primarily driven by single asset transactions.
| Item Type: | Thesis (Master) |
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| Degree programme: | Real Estate Studies |
| Supervisor: | Liu, X. and Daams, M. |
| Date Deposited: | 23 Apr 2020 05:13 |
| Last Modified: | 23 Apr 2020 05:13 |
| URI: | https://frw.studenttheses.ub.rug.nl/id/eprint/157 |
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