International residential real estate

Most international residential real estate transactions are generated by individuals purchasing lots or built units (including family homes, apartments, and condominium units). These purchases form the bulk of what is sometimes referred to as the vacation/second home market or residential tourism market.

If a person wishes to initiate international real estate investment for the individual’s or the institution’s portfolio, the person or financial
manager may consider multiple avenues. The indirect method of entering international real estate investment may involve passive investment in securities that are based on international real estate
collateral or passive investment in international real estate service firms and offices. The direct method of entering international real estate investment may involve total acquisition or partial acquisition of the foreign property.

For developed countries whose GDP per capita is above threshold level, it is calculate the value of institutional-grade real estate is 45% of national GDP, which is consistent with data gathered. However, to determine the size of institutional-grade real estate markets in developing countries adjustments are made because only the more affluent segments of the population in those countries have the wherewithal to use such real estate.

Some of the factors leading to the growth in the international residential real estate sector are:
  • the rise in international tourism and travel;
  • the baby boomer generation reaching retirement age and looking for more flexible retirement options;
  • the increase in available information on the World Wide Web regarding property listings in countries around the world.
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    This is from wikipedia

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