Real Estate Investments: Exploring Types and Strategies for the Residential Market

Aigerim Almazbekova

Bachelor's thesis

Abstract:

This study aimed to compare the profitability and risk profiles of three distinct real estate investment options in the United States—the commercial market, housing market, and Real Estate Investment Trusts (REITs). Employing return analysis, correlation analysis, and time series analysis, our findings reveal positive returns for all three options, with REITs demonstrating the highest profitability. However, this superior return is accompanied by heightened risk, emphasizing the need for a balanced approach in aligning investments with individual risk tolerance and financial goals. Correlation analysis underscores the importance of diversification for risk mitigation, while time series analysis provides insights into market dynamics and trends. This study serves as a valuable resource for investors, offering a comprehensive understanding of the financial performance and risk considerations associated with diverse real estate investment avenues.

Keywords

Real estate investments, Investment strategies, Investment types, Residential market, Market analysis, Property management, Market trends, Financing options

Language used: English

Date on which the thesis was submitted / produced: 17. 3. 2024

Thesis defence

• Date of defence: 20. 5. 2024
• Supervisor: Ing. Kristýna Kučírková, MSc
• Reader: Martina Jarkovská, Ph.D.

Czech University of Life Sciences Prague

Faculty of Economics and Management

Bachelor programme:
Business Administration