Abstract
The South Africa real estate market is an important African real estate market, having attracted considerable investor interest in recent years; particularly from domestic real estate investors. This paper highlights the risk-adjusted performance and portfolio diversification benefits of commercial real estate in South Africa in a mixed-asset portfolio over the 1996-2016 period, as well as in a post-GFC context. The risk- adjusted returns analysis demonstrates a clear distinction of the performance of commercial real estate in South Africa, with both direct and listed real estate providing competitive risk-adjusted performance compared to stocks and bonds. Importantly, both direct and listed real estate contributed significantly in mixed-asset portfolios due to improved portfolio diversification benefits since the GFC. The strategic real estate investment implications are also highlighted.
| Original language | English |
|---|---|
| Pages (from-to) | 291-311 |
| Number of pages | 21 |
| Journal | Journal of Real Estate Literature |
| Volume | 26 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 2020 |
Bibliographical note
Publisher Copyright:© 2020 American Real Estate Society. All rights reserved.
Keywords
- Asset allocation
- Commercial real estate
- Portfolio diversification
- Risk-adjusted returns
- South Africa