Because most people employed in real estate today have only ever worked in a globalised world, it can be hard to imagine how it could be any other way.
But the prevailing mood around the world is increasingly opposed to globalisation, with political and economic nationalism and protectionism on the rise. From Brexit, to President Donald Trump’s trade tariffs and America-first policies, to an increasingly nationalistic government in India and other emerging economies, growing inequality has led to a pushback against the idea of an increasingly interconnected world.
That could have big implications for the commercial property sector.
The real estate industry has been a big beneficiary of globalisation: 40% of global real estate deals last year were cross-border, according to JLL, up from less than 10% at the beginning of the 1990s. Increased globalisation has brought in more investors and pushed up prices and thus increased the volume of professional fees in the sector.
But what might happen if globalisation continues to reverse? That is the question posed by the UK’s Investment Property Forum in a new paper, Global Capital Flows in a World of Increasing Nationalism & Protectionism. So far, there has been little impact on global real estate capital flows: Capital controls…
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