Unravelling liquidity in international commercial real estate markets
Liquidity is a multidimensional phenomenon. Transaction timing and costs, and the ability to sell without affecting the asset price are examples of how liquidity can impact investors' behaviour and institutional asset portfolios. Real Estate markets are often seen as “illiquid”. The research sought to determine how liquidity can inform investor decision processes in the commercial sector.
Recent research has looked at liquidity in international real estate markets within different cities and countries. The research shows that internationally, markets differ in their transaction times, costs and processes. As expected, leading global cities have the highest amount of absolute transaction activity, which appears to be a useful proxy for liquidity.
Research Team: Steven Devaney (CASS Business School), Nicola Livingstone (Bartlett School of Planning, University College London), Pat McAllister (Henley Business School) and Anupam Nanda (University of Manchester)
This research was funded by Investment Property Forum.