| Abstract [eng] |
European real estate investment fund return and its factors analysis The purpose of my research is related to the real estate investment funds, which became popular measure to invest indirectly in real estate starting from middle 20th century due to attractive high return and low risk ratio. There are two main types of investing in real estate through real estate investment funds: to invest in listed and unlisted funds. It was identified the problem that it is difficult to estimate which real estate investment fund type is more attractive and there is a lack of analyzes between real estate investment fund return and economical and financial factors, which were identified as extremely significant in the short term. The aim of the research: analyze and compare listed and unlisted investment fund index return and to determine how economical and financial affect return. Research methods: In order to achieve the aim and objectives of the research, the following methods had been used: the scientific analysis of literature, study of already performed researches, graphical representation, structural analysis, dynamic analysis, correlation analysis, regression analysis and the Hodrick-Prescott filter. Research results and conclusions: The research is composed of introduction, three chapters and conclusion. Chapter one describes investments and investment funds, this part explains what determines that investment funds were founded and explores types of it. This chapter also compares two main types of real estate investment funds (listed and unlisted) and examines the prime factors who affect real estate investment fund return: geographical, political, legal, economical and financial. Chapter two concentrates on the methodology how the raised problem should be solved. This chapter describes four stages how the aim of the research should be reached. Chapter three was designed based on research methodology. It consists of two subchapters: first subchapter analysis and compares mentioned listed and unlisted real estate investment fund index in order to identify which type is more attractive. For that purpose were used these methods: structural index analysis by countries and sectors, Sharpe ratio and the Hodrick-Prescott filter. The study showed that according to these analysis listed funds are better investment since return and risk ratio is more attractive. Subchapter two was focused on economical and financial factors and their effect on listed fund index return. Regression analysis showed that economic stability and interest rate have the greatest influence on index return. This analysis also showed that the model with European Union factors had more influence (R^2=41,36%) index return compared to model with United Kingdom return (R^2=30,21%). Conclusions are drawn in the end of the research. The main aim of the research has been reached. It was suggested to support and promote real estate investment funds, especially listed funds since they are new real estate investment instrument in Baltic States and was highlighted as the better type based on this research. This study also has confirmed that economical and financial factors affect real estate investment fund return and it was recommended before and through the time of investing monitor the market in whole region despite the fact that investment properties can be found only in some countries of it. It was recommended, that listed fund should be promoted in each country since it is good investment which could diversify investment portfolio, gives opportunity for each investor to invest in big real estate project and in the meantime to make own decision. |
