Agency Problem Essay 7

Table of Contents Introduction1 European Non-Listed Real E state of matter Investment commercialize 1 Agency Theory2 validating Real ground Investments and Agency Theory4 Solutions for In reckon Real Estate Investing9 Conclusion10 References10 I. Introduction: Europe is usually renowned for the real res publica enthronement. As per the survey in 2003 the accurate allocation for the real estate of all respondent is 10.4% where direct real estate covers 6.9%. It was found that though listed real estate has high liquidity and low investment as compared to oppositewise forms it is still unpopular. They estimated to increase the allocation of real estate in 2004 with non listed estate which was most popular followed by listed real estate. During the similar time in Europe interest in REIT the like tax transparent structures was in increasing phase. some(prenominal) other countries have same structure like Belgium, Netherland etc. too UK planned to have US REIT by 2005 and followed by Germany. Many other countries are in the process to implement such structures. This helps investors to invest more in the indirect real state rather indirect real estate. This results in increase in chest problem among investors.

In order to reduce agency problem direct real estate market needfully complete intimacy to judge the investment and disinvestment decision of the instruction of the listed and non-listed real estate. The goal of indirect real estate investment is also to use more detailed market knowledge instead of direct investment. The detailed market knowledge is non given at the level of the level of the investors. The problem conjugated with principal agent relationships is crucial for investors. Agency problem has slip away to the development of corporate governance initiatives and the launch of INREV in 2003 by investors in non-listed real estate vehicles. II. European Non-Listed Real Estate Investment Market Real estate achieves greater recognition in Europe than any other asset class because out-of-doors and... If you want to get a full essay, order it on our website: Ordercustompaper.com

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