The Berlin Case Study
This map demonstrates how Beta analysis can be adopted by residential real estate asset management. In the map you will find a few critical metrics:
Historical return (rent and capital gain) and volatility;
Rental yield for patient investors;
Residential Beta at postcode level;
Performance indicators: Treynor's Ratio and Jenson's Alpha.
The market average return and risk for Berlin in the past 12 years are: 17.3% and 5.3%(sd).