Financial Characteristics of International Real Estate Returns : Evidence from the UK, US, and Germany

In contrast to the United States and the United Kingdom, little empirical work exists about the distributional characteristics of appraisal-based real estate returns outside these countries. The purpose of this study is to fill this gap by focusing on Germany. In line with other studies, this paper offers an extensive investigation into the distribution of German real estate returns and compares them with and U.S. and U.K. data in the same period. Furthermore, the co-movements with bonds and stocks are also examined. In the core, the distributional characteristics for German real estate are comparable to that for the U.S. and U.K