Real Estate Finance and Risk Management

A special issue of Journal of Risk and Financial Management (ISSN 1911-8074). This special issue belongs to the section "Financial Markets".

Deadline for manuscript submissions: 31 December 2026 | Viewed by 3846

Special Issue Editor


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Guest Editor
Département de Stratégie, Responsabilité Sociale et Environnementale, École des Sciences de la Gestion, Université du Québec à Montréal, Montréal, QC H3C 3P8, Canada
Interests: real estate finance; real estate financial risks; real estate financial management risks; real estate management in the digital age; real estate knowledge management; transition in real estate management models

Special Issue Information

Dear Colleagues,

Real estate has traditionally been a cornerstone of national wealth and a key asset that significantly influences the economy. As such, conceptualizing, measuring, and managing the value of real estate has always been crucial. Historically, real estate has been understood primarily as a physical entity—one comprising land, buildings, materials, and construction. As such, the risk analysis and financial management approaches used in real estate have been slow to adopt more traditional risk management frameworks, which have evolved in other sectors.

However, as the real estate sector transforms, its understanding and valuation have evolved as well. Moving from a focus on its physical utility, real estate is now being seen through various lenses, from its provision of services and activities to its increasingly virtual and abstract dimensions. This shift is fundamentally altering how real estate is integrated into economic models and strategies.

With these changes, the determinants of the value of real estate are evolving, affecting traditional measurement models and methods. This Special Issue will explore how these shifts in the conceptualization and value determinants of real estate create new risks for investors, developers, and financial managers. It will also focus on identifying these emerging risks and proposing conceptual, empirical, and methodological approaches to measuring and managing them.

We invite contributions that examine both the changing nature of real estate risks and the financial management strategies needed to address them. The papers in this Special Issue may present new conceptual frameworks, risk measurement models, and empirical studies that provide insights into how financial management in real estate can adapt to these evolving challenges. By addressing these pressing issues, this Special Issue seeks to advance the field and promote more resilient, future-proof strategies for managing real estate assets in a rapidly changing environment.

Prof. Dr. Ünsal Özdilek
Guest Editor

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Keywords

  • real estate management
  • real estate financial risks
  • real estate financial management risks
  • real estate financial management in digital context
  • real estate value management
  • real estate value valuation
  • real estate digital transition
  • real estate knowledge management
  • transition in real estate management models
  • new real estate management models

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Published Papers (3 papers)

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Research

18 pages, 289 KB  
Article
Reassessing Residential REITs: Performance and Resilience After COVID-19
by Donna Seapoe, Anne Keenaghan and Davinder Malhotra
J. Risk Financial Manag. 2026, 19(3), 165; https://doi.org/10.3390/jrfm19030165 - 26 Feb 2026
Viewed by 1889
Abstract
This study analyzes the monthly returns of residential real estate investment trusts (REITs) from 2010 through 2025, assessing how these investments performed both during and following the COVID-19 pandemic. Using Sharpe, Sortino, and Omega ratios and multi-factor asset pricing models, the study finds [...] Read more.
This study analyzes the monthly returns of residential real estate investment trusts (REITs) from 2010 through 2025, assessing how these investments performed both during and following the COVID-19 pandemic. Using Sharpe, Sortino, and Omega ratios and multi-factor asset pricing models, the study finds that residential REITs delivered stable risk-adjusted returns and improved downside protection relative to broad indices. Value-at-risk metrics confirmed their defensive nature, and portfolio optimization demonstrated diversification and volatility reduction when including residential REITs. Overall, residential REITs were shown to preserve capital and improve portfolio efficiency during market disruptions. Full article
(This article belongs to the Special Issue Real Estate Finance and Risk Management)
14 pages, 322 KB  
Article
Evaluating Factor Contributions for Sold Homes
by Jason R. Bailey, W. Brent Lindquist and Svetlozar T. Rachev
J. Risk Financial Manag. 2026, 19(2), 146; https://doi.org/10.3390/jrfm19020146 - 13 Feb 2026
Viewed by 476
Abstract
We evaluated the contributions of ten intrinsic and extrinsic factors readily available from website data to individual home sale prices for three major U.S. cities using a P-spline generalized additive model (GAM). We identified the relative significance of each factor by evaluating the [...] Read more.
We evaluated the contributions of ten intrinsic and extrinsic factors readily available from website data to individual home sale prices for three major U.S. cities using a P-spline generalized additive model (GAM). We identified the relative significance of each factor by evaluating the change in the adjusted R2 value resulting from its removal from the model. We combined this with information from correlation matrices to identify the added predictive value of a factor. For these three cities, the tests revealed that living area and location (latitude, longitude) had the strongest impact on explained variance, and each factor independently added predictive value. Relative impacts of the other factors were city-dependent. We utilized this information to develop an improved GAM with superior concurvity values. The improved GAM required the use of linear orthogonalization of factors combined with smoothing functions based on tensor products of correlated factors. Full article
(This article belongs to the Special Issue Real Estate Finance and Risk Management)
43 pages, 3145 KB  
Article
Property Tax, Local Sales Tax and Business Activity in Nevada: A Spatial Analysis
by Quan Sun, Minjie Huang, Mehmet Tosun and Hao Sun
J. Risk Financial Manag. 2026, 19(2), 123; https://doi.org/10.3390/jrfm19020123 - 6 Feb 2026
Viewed by 847
Abstract
This study examines how business activity responds to local taxation, specifically property tax and local sales tax, in Nevada. Using county-level data for the period 1999–2014, we assess the impact of these taxes on various business activity indicators, including employment, annual payroll, the [...] Read more.
This study examines how business activity responds to local taxation, specifically property tax and local sales tax, in Nevada. Using county-level data for the period 1999–2014, we assess the impact of these taxes on various business activity indicators, including employment, annual payroll, the number of establishments, and the number of small establishments categorized by size. Unlike previous studies that primarily focus on state-level taxation, our research delves into the effects of local tax instruments. By analyzing different components of the property tax (e.g., school district, county, and special district rates) and evaluating the specific effects of local sales tax changes, we provide a nuanced understanding of the local tax–business activity relationship. To address potential policy endogeneity in the sales tax rate, we instrument the sales tax rate using the lagged share of registered Democrats and implement an IV (control-function) spatial Durbin framework, ensuring robust estimates of within-period associations and spatial spillovers. Our analysis is intentionally confined to the 1999–2014 institutional regime, when Nevada businesses were primarily exposed to property and sales taxes. The estimates should, therefore, be interpreted as evidence on how the local tax mix and its components correlate with business activity under this pre-2015 fiscal structure, rather than as a direct forecast for the post-2015 environment shaped by subsequent policy changes and macroeconomic shocks. Across specifications, the IV-identified total effect of the sales tax rate is consistently negative for establishment-related outcomes. Nonetheless, the results remain informative for current debates on the design of local revenue systems because the underlying tax–service bundle and cross-jurisdictional spillover mechanisms continue to be central to local public finance. Full article
(This article belongs to the Special Issue Real Estate Finance and Risk Management)
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