The assessment of real estate investment opportunities in Lithuania

Opportunities of real estate investment are analyzed in this research, based on theoretical aspects and empirical research. The average return, risk and Sharpe ratio of direct real estate investment are computed in the research. These results are compared with analogical ratios calculated for other financial asset groups. The comparison indicated which type of assets has the highest level of the average return, risk and Sharpe ratio. It helped to determine how different are the investments in real estate comparing with investments into other groups of financial assets in terms of risk and return. The analysis of diversification opportunities are based on Pearson correlation method. The main conclusion of research, direct real estate investment is suitable for portfolio diversification in nearly all cases, investment in real estate fund gave similar return, but the level of risk was lower several times compared with investment in stock fundEkonomikos ir vadybos fakultetasVytauto Didžiojo universiteta