Does Real Estate Development Add Value?
分析了英国2001年以来的房地产开发项目，发现平均而言开发并未显著优于现有投资，且收益波动性高出50%但仅高出1.2%，对投资组合策略和风险管理有启示。
Real estate development is often pursued as a value-enhancement strategy, but its risk-adjusted returns remain debated. This article analyzes UK developments and redevelopments since 2001 using the standing investment market equivalent (SIME) metric to assess excess development returns. Findings highlighted in the article challenge the notion of consistent “super profits” and show that, on average, developments do not significantly outperform standing investments. Market conditions and project size influence outcomes, with larger projects yielding better returns. Institutional investors tend to underperform private investors, likely due to performance leakage to external expertise. Finally, average development returns are shown to be 50% more volatile yet only 1.2% higher, on average, which highlights important implications for portfolio strategy and risk management.