This paper investigates heterogeneity in residential property yields using rental and sale listings from the largest German internet real estate platform. Equipped with property-level rent-to-price ratios obtained via matching properties for sale and for rent, we show that they strongly co-move...

The Simulation-Based Excess Return Model (SERM) offers a simple, practical decision-making method for underwriting real estate development projects. It addresses the shortcomings of discounted cash flow modeling by taking into account the probabilistic distribution of outcomes and is based on...

We examine foreclosure discounts and their subsequent impact on investor returns in Berlin's housing market from 1984 to 2022. Utilizing hedonic regression models and matching techniques on a data set of housing transactions, we determine that foreclosure discounts, ranging from 20% to 50%, are...

The Simulation-Based Excess Return Model (SERM) offers a simple, practical decision-making method for underwriting real estate development projects. It addresses the shortcomings of discounted cash flow modeling by taking into account the probabilistic distribution of outcomes and is based on...