The term international real estate describes a relatively new phenomenon, beginning in the 1980s and in line with globalization. This term covers the development of real property, sales and transactions on leases across borders. International real estate can be seen as one of the most dynamic branches of real estate although, by definition, is influenced by fluctuations in market value across various sectors across countries, as can be proven by the 2008 global credit crisis.
Video International real estate
Jenis
The best international real estate is divided into two categories: international commercial real estate and international residential real estate. Some examples of international real estate transactions are:
- a citizen of one country buys a home in another country
- a company headquartered in a country buying or renting office buildings in other countries
- a company or investment group in one country builds a hotel in another country
Maps International real estate
International commercial real estate
Most international commercial real estate transactions take place between companies and may involve, lead to, or be a consequence of law, design, urban planning, engineering, financing, and construction work. From the perspective of national governments, attracting foreign investment into real estate development projects can be a top priority for increasing state revenues and a key strategy for increasing the availability of national infrastructure and facilities.
Some of the factors leading to growth in the international commercial real estate sector are:
- postwar growth in development and urban infrastructure in developed and developing countries;
- the business evolution of multi-national business operations;
- a growth in international investment practices that allows investors to look beyond their own countries to perform above-average performance investments.
The Institutions of Globalization
The integration of international capital markets requires institutional assistance, both through the emergence of investment products that serve international investors, and through reliable sources of information that make markets more transparent. The development of public equity markets and real estate debt makes it easier for investors to allocate large sums of money outside of their home markets. The overall growth of the global property stock market is aided by the proliferation of tax pass-through structures around the world. The success of the US REIT market has encouraged regulators in many countries to introduce the same but different named structure. REIT is an important development in the internationalization of the property market.
Real estate international housing
Most international residential real estate transactions are generated by individuals who buy lots or build units (including family homes, apartments, and condominium units). These purchases form a large part of what is sometimes referred to as the second holiday market/home market or residential tourism market.
If someone wants to start an international real estate investment for an individual or institutional portfolio, the person or financial manager may consider several ways. The indirect method of entering into an international real estate investment may involve a passive investment in securities based on international real estate security or passive investments in companies and offices of international real estate services. The direct method of entering into an international real estate investment may involve the total acquisition or the acquisition of a portion of the foreign property.
For developed countries whose GDP per capita is above the threshold level, it calculates the value of the institutional grade real estate is 45% of the national GDP, which is consistent with the data collected. However, to determine the size of the institutional class real estate market in developing countries adjustments are made because only the more affluent segment of the population in countries that have the means to use the real estate.
Some of the factors leading to growth in the residential real estate sector are:
- increase in tourism and international travel;
- baby boomers reach retirement age and look for more flexible retirement options;
- an increase in the information available on the World Wide Web about listing properties in countries around the world.
Recent Improvement in Chinese Real Estate Investment in the United States
Major increases in international real estate investments have taken place between China and the United States. In the US, China is now the largest foreign buyer in the home, which accounts for $ 28.6 billion in sales in the 12 months ending March 2015, according to the National Association of Realtors. There are three main reasons why China invests in the US real estate market: diversification of investments, foreign education of children and their immigration.
The Chinese real estate website Juwai.com estimates that overseas Chinese real estate holdings are worth $ 80 billion by 2015 and are expected to reach $ 220 billion by 2020. Chinese investors are interested in commercial projects, residential properties, hotels, golf courses , clubs, land, industrial warehouses, office buildings, and shopping centers. Chinese investors initially mostly focused on major gate cities such as New York City, San Francisco, Los Angeles but now moved to other cities as well.
See also
- Urban development
References
Source of the article : Wikipedia
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