why doesn't currency exchange rate affect real estate & real return?

2015 PM #47

I think it has something to do with IRP or PPP but i just can’t seem to get the right explanation.

But the answer says currency exchange rate has no effect on Real Estate and Real Return. The only thing that I can think of that they have in common are they are usually a good inflation hedge.

ah got it. it’s based on IRP

I had same question what did you discover? I figured it was since commodities are based on derivative transactions and Real Estate won’t have any intra-period cash flows, but these are wide assumptions.