Centralism vs Federalism

Abstract

As property investment increasingly takes place on an international stage, investors are turning to portfolio theory to help structure their investment strategies. Portfolio theory is an expectations‐led theory. It is insufficient to rely on historic property returns alone. Rather, the fundamental factors that drive market performance should be considered. Argues that any European diversification strategy should consider the political and administrative structures in place in the Community. Specifically, contrasts the federal structure of Germany with the centralized structure of France and considers the implications for institutional investment and real‐estate performance.