International diversification of real estate assets: is it worth it? Evidence from the literature

Abstract

This study examines the literature on the benefits of diversifying property assets internationally. There is no consensus on how much benefit can be derived from the global diversification of property. In the literature there are two contrasting opinions as to the level of integration global property markets have and the advantages there are from holding international property assets. The findings show that there are mixed outcomes irrespective of whether direct or indirect property assets are being examined. This study also provides some insights into more recent developments in the literature that might explain some of the diverse opinions that have been formed.