On 30 and 31 October 2009, ZEW hosted the first conference of the Leibniz network “Real Estate Markets and Capital Markets” (ReCapNet). Launched in early 2009, the international research network aims to investigate the consequences of the growing significance of capital market financing on the real estate markets.

In the first presentation, Sau Kim Lum from the National University of Singapore used a consumption-based asset pricing model to explain the impact of the government on real estate prices. After that, Daniel Kohlert from the University of Bamberg compared economic and geographic diversification strategies on the real estate market. Liang Peng from the University of Colorado, Boulder shed light on the significance of the credit supply for the strengthening of real estate market cycles. In another lecture, Christian Rehring from the University of Regensburg presented his research findings regarding the return properties of direct and indirect property investments in the United States and the United Kingdom.

Simulation of credit defaults on the mortgage market

The conference featured two lectures on the decision-making behaviour of international real estate investors. André Scharmanski, who works at the Federal Institute for Research on Building, Urban Affairs and Spatial Development, investigated path dependencies of investment behaviour, while Sabine Dörry from the Goethe University in Frankfurt provided insights into the impact of standards of training. The presentations held by Christian Hott from the Swiss National Bank and André Ebner from the University of Munich both centred on the topic of mortgage markets. Christian Hott presented a model for the simulation of credit defaults on the mortgage markets, for which he used data from the United States, the United Kingdom and Switzerland. André Ebner discussed the determinants of equity mortgage withdrawal in the Netherlands.

The last two lectures given within the framework of the conference shed light on the relationship between direct and indirect real estate investments in the US real estate market (Elias Oikarinen from the Turku School of Economics) and included a comparison of these different forms of investment and their use for inflation protection (Markus Demary, German Economic Institute in Cologne).

More information on the conference programme as well as the abstracts of the papers discussed can be accessed via the homepage of the Leibniz network “Real Estate Markets and Capital Markets” (ReCapNet).


Dr. Peter Westerheide

E-mail: westerheide@zew.de





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