The euro conversion as an exogenous event in foreign exchange markets offers an opportunity not only for investigation of the impact of the euro on international real estate performance, but allows a general inquiry and test of the introduction of an alternative currency regime within the construct of historical economic principles. These general economic ÏLawsó may enable an alternative approach and conceptual construct to the specific empirical investigation of the extent to which the change in exchange rates influences the change in real estate returns. This inquiry is necessary to address the dichotomy in the international real estate literature as to the extent to which exchange rate volatility offsets the arbitrage and diversification potential offered by international real estate in mixed asset portfolio. Strong arguments and positions have been taken on both sides of this issue as expressed in the research of Ziobrowski, and Curio (1991), Gordon and Canter (1998), Liu and Mei (1998), etc.