Original scientific paper
https://doi.org/10.1080/1331677X.2018.1556110
The concept of the real estate portfolio matrix and its application for structural analysis of the Polish commercial real estate market
Bolesław Kołodziejczyk
; Unaffiliated, Warsaw
Paweł Mielcar
; Department of Finance, Kozminski University, Warsaw, Poland
Dmytro Osiichuk
; Department of Finance, Kozminski University, Warsaw, Poland
Abstract
This paper presents an innovative model for property portfolio assessment based on the concept of a growth-share matrix. The proposed real estate portfolio matrix uses two primary qualities of properties: their potential to accrue value over the holding period and their ability to generate stable positive cash flows. The aim of the model is to utilise these two dimensions in the assessment of the qualities of individual properties and to identify their subsets to meet preferences of different groups of real estate investors. The concept was developed to provide companies with strategic advice on how to optimise the sales strategy of their non-core property assets. This method can be applied successfully to both commercial and residential properties. The concept is subsequently utilised for the purpose of post-hoc structural analysis of the Polish commercial real estate market. Transaction analysis accentuates the prevalence of core assets in terms of both transaction volume and value. Value-added assets constitute a much smaller market segment but may nevertheless present a good opportunity for portfolio diversification. Speculative assets appear to be scarce, which is characteristic of the current phase of real estate market conjuncture.
Keywords
Real estate portfolio matrix; real estate portfolio analysis; REPO-M; strategic asset allocation
Hrčak ID:
228570
URI
Publication date:
22.1.2019.
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