Local real estate specialization superior during economic crises.

Some research is done about the difference between locally specialized and internationally diversified publicity traded real estate companies. However the results obtained give no clear answer which type performs better. In this paper first I review the excisting literature and show that there are suggestions made that these two types of companies behave differently during econimic crisis. Especially because of the different effect of the information advantage local companies have during crisis en non-crisis periods. I investigate this for the global economic crisis during the period 1985-2009. It is hard to compare econmic crisis but in this paper I find clear indications that domestic real estate companies outperform international real estate companies during economic crisis.