Abstract
We examine the determinants of commercial real estate investments using a unique set of panel data series for 47 countries worldwide ranging from 2000 to 2009. We explore how different socio-economic, demographic and institutional characteristics affect commercial real estate investment activity through, both, cross-sectional and time-series analyses, running augmented random effect panel regressions. We provide evidence that economic growth, rapid urbanization and compelling demographics attract real estate investments and also confirm that lack of transparency in the legal framework, administrative burdens of doing real estate business, socio-cultural challenges and political instabilities of countries reduce international real estate allocations.