01.10.2024Francisco Amaral joins the Department of Finance

Francisco Amaral earned his PhD in Economics from the University of Bonn in 2024. He is a Research Fellow at the Institute for the World Economy Kiel (IfW Kiel).  Francisco's research lies at the intersection of financial and urban economics, with a particular emphasis on the market microstructure of housing markets and its influence on the spatial distribution of housing prices and returns.

Prof. Amaral – welcome to the Department of Finance! What inspired you to join UZH?

The research excellence at UZH and the opportunity to be in the heart of Europe were two major factors in my decision to come to Zurich.

What are your research interests?

My primary research focuses on understanding the factors that affect prices and returns in real estate markets.

Specifically, I examine how returns to housing investments vary across regions and what factors influence this variation. In my papers, I propose that the variation in returns is likely a function of risks associated with local housing market characteristics, such as liquidity. In addition, I analyze the extent to which idiosyncratic risk plays a role in housing markets, which are typically very incomplete markets.

What do you see as the biggest challenges currently facing Real Estate Finance, and how do you incorporate these issues into your teaching and research?

One of the most significant challenges for developed economies worldwide is making housing markets more affordable while ensuring financial and climate sustainability. In my research and classes, I aim to shed light on the sources of risk associated with real estate investments and to help build incentive-compatible policies that address these challenges.

Can you share a current project and its potential impact?

I am the co-founder of the German Real Estate Index (GREIX), a project dedicated to increasing transparency in the German housing market. We provide a set of high-quality real estate indicators that track the evolution of the housing markets in various German cities, all free of charge at www.greix.de. Building on this project, I am trying to address different research questions, such as the extent to which climate change affects the price and liquidity of houses.

How do you plan to engage students in your courses?

I believe that incorporating regular hands-on sessions focused on data analysis and programming is crucial for motivating students and preparing them for the job market.

Thank you, Professor Amaral, for your time and insights!