A final reason apart from sharing in such economic growth and higher expected returns is the additional diversification benefits that may accrue. Studies have shown the considerable benefits to be gained from the international diversification in real estate markets (see Lizerli et al 1998 for a review). However, the economic convergence observed in world markets and the globalisation of the worlds financial system has led to the emergence of a number of key financial centres: London, New York and Tokyo, whose real estate markets are closely tied to the new international financial circuits. As a result their.
