<abstract xmlns="http://www.w3.org/1999/xhtml"><p> The first closed-end real estate investment funds in Poland began to appear in 2004, along with the development of the capital market and the real estate market. The funds invested both in the housing market and in the commercial market. In general, they encouraged potential investors to purchase investment fund units by pointing to positive results obtained by similar funds in other countries, as well as the dynamic growth of prices in domestic real estate markets. However, the analysis of the performance of closed-end real estate funds in Poland shows that they have failed to earn satisfactory rates of return. The aim of the study was to compare their performance with the profitability of other investment instruments in the 2004 to 2014 period. In addition, the authors aimed to establish why closed-end real estate funds had failed to succeed in Poland, by analyzing, among other things, their institutional context. The study was based on a comparison of the characteristics and performance of particular funds, and also analyzed the profitability of selected alternative investments.</p></abstract>

The first closed-end real estate investment funds in Poland began to appear in 2004, along with the development of the capital market and the real estate market. The funds invested both in the housing market and in the commercial market. In general, they encouraged potential investors to purchase investment fund units by pointing to positive results obtained by similar funds in other countries, as well as the dynamic growth of prices in domestic real estate markets. However, the analysis of the performance of closed-end real estate funds in Poland shows that they have failed to earn satisfactory rates of return. The aim of the study was to compare their performance with the profitability of other investment instruments in the 2004 to 2014 period. In addition, the authors aimed to establish why closed-end real estate funds had failed to succeed in Poland, by analyzing, among other things, their institutional context. The study was based on a comparison of the characteristics and performance of particular funds, and also analyzed the profitability of selected alternative investments.

Closed-End Real Estate Funds in Comparison with other Investment Opportunities in Poland

Department of Industry Economics and Capital Market University of Lodz, Lodz

Department of Investment and Real Estate University of Lodz, Lodz

Real Estate Management and Valuation

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

The first closed-end real estate investment funds in Poland began to appear in 2004, along with the development of the capital market and the real estate...

Closed-End Real Estate Funds in Comparison with other Investment Opportunities in Poland

Published Online: Apr 12, 2017

Page range: 19 - 31

DOI: https://doi.org/10.1515/remav-2017-0002

Keywords
close-end real estate investment fund, Poland, profitability, loss

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Closed-End Real Estate Funds in Comparison with other Investment Opportunities in Poland

Published Online: Apr 12, 2017

Page range: 19 - 31

DOI: https://doi.org/10.1515/remav-2017-0002

Keywordsclose-end real estate investment fund, Poland, profitability, loss

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
close-end real estate investment fund, Poland, profitability, loss