@article {Georgiev28, author = {Georgi Georgiev and Bhaswar Gupta and Thomas Kunkel}, title = {Benefits of Real Estate Investment}, volume = {29}, number = {5}, pages = {28--33}, year = {2003}, doi = {10.3905/jpm.2003.319903}, publisher = {Institutional Investor Journals Umbrella}, abstract = {Real estate investment represents a significant part of many institutional portfolios. Since real estate is not directly traded on a centralized exchange, the physical real estate market is characterized by relative lack of liquidity, large lot size, and high transactions costs with properties that are fixed at a location and heterogeneous. The low transparency of the real estate marketplace also results in potential asymmetric information. This provides a source of relatively high risk-adjusted returns to those individuals who can obtain costless {\textquotedblleft};quality{\textquotedblright} information. Furthermore, the lack of frequent transaction data for the analysis of return distributions often necessitates the use of appraisal-based series. In this article, the authors examine the benefits of real estate investments as part of an investor{\textquoteright}s overall asset portfolio.}, issn = {0095-4918}, URL = {https://jpm.pm-research.com/content/29/5/28}, eprint = {https://jpm.pm-research.com/content/29/5/28.full.pdf}, journal = {The Journal of Portfolio Management} }