Martin Hoesli

Martin Hoesli is Professor of Real Estate Investments and Finance at the University of Geneva and Chair in Accountancy at the University of Aberdeen. Professor Hoesli is a past president of the International Real Estate Society and of the European Real Estate Society, a Fellow of the Royal Institution of Chartered Surveyors, and a Hoyt Academic Fellow of the Maury Seldin Advanced Studies Institute. He is also on the board of the Swiss Financial Analysts Association, the Swiss Training Centre for Investment Professionals (AZEK), and the European Commercial Real Estate Data Alliance (E-CREDA). He sits on the Research Committee of the European Public Real Estate Association. He is a two-time winner of the Nick Tyrrell Research Prize, a recipient of both the International Real Estate Society Achievement and Service Awards, and a winner of the David Ricardo medal, the highest award of the American Real Estate Society.

Expertise

Professor Hoesli is investigating how best to diversify a portfolio. He recently tackled this question by examining gateway and nongateway real estate markets in the US. Using simulation analysis and property-level data, he compares performance metrics for portfolios containing varying proportions of gateway and non-gateway markets. Gateway markets have higher appreciation and total returns, while non-gateway markets exhibit higher income returns even after accounting for capital expenditures. He shows that discriminating between gateway and non-gateway markets is useful for mixed-asset diversification purposes, with the former type of market appearing in risky portfolios and the latter in low-risk portfolios. By considering a large spectrum of performance metrics in a realistic investment setting, the results should provide investors with valuable information when allocating funds across gateway and non-gateway markets.