Cross-Border Investments explores how global capital flows, particularly foreign direct investment (FDI), impact local real estate markets and economies. The book investigates the intricate relationship between international finance and its effects on housing affordability and urban development. For example, the influx of foreign capital can lead to increased real estate values, potentially exacerbating inequalities. It also examines the role of sovereign wealth funds and institutional investors in shaping these dynamics, offering insights into investment strategies and their consequences on financial markets.
The book traces the evolution of cross-border capital flows, highlighting significant events like financial market deregulation and the rise of new economic powers. It argues that while cross-border real estate investments can stimulate economic growth, they may also contribute to housing unaffordability and asset bubbles.
Using econometric analyses and case studies from North America, Europe, and Asia, the book dissects investment vehicles, risk assessment, and due diligence processes. It also evaluates policy tools like capital controls and taxation measures, providing a comparative analysis of different regulatory models.
The book presents a structured approach, progressing from the mechanics of cross-border real estate investment to the socio-economic impacts and regulatory responses. It offers a nuanced understanding of the merits and drawbacks of capital controls and the ethical responsibilities of foreign investors, making it valuable for policymakers, real estate professionals, and anyone interested in the global forces shaping their communities.
