Utilising a sample of 135 properties with continuous returns data calculated at monthly intervals over the period from January 1979 to December 1982 an analysis is undertaken to test the efficiency of the UK commercial property market. The results show that the market is efficient at the weak form level and that valuers are doing a good job in impounding information. Significant positive serial correlation does exist at the portfolio level but this is probably induced by averaging. The empirical evidence would seem to imply that the property market conforms to the requirements of a fair game so that investors can only expect to earn high returns by taking on high risk.
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