Modelling Foreign Real Estate Investment: The Spanish Case

Abstract

Foreign real estate investment, Housing investment bubble, Foreign direct investment,

Determinants of Foreign Investments in Residential Properties: Evidence From Malaysian States

“…In other words, from each of the existing models, a number of determinants can be extracted. This is in line with Rodríguez and Bustillo (2010).…”

“…Moreover, they found that foreign developers favored cities that had invested heavily in their real estate industries and also cities with more developed land market and more liberalized economies. Rodríguez and Bustillo (2010) examined the determinants of foreign real estate investment inflows for Spain over the period 1990-2007, applying Engle-Granger cointegrating Regressions. Based on the elective model, they concluded that GDP per capita, expected capital gains, travel costs, tourism agglomeration and housing prices are relevant factors explaining FREI in Spain.…”

“…Similarly, Zhu et al (2006) noted FREI is deemed local economic activities because of its heterogeneity, low liquidity, and high transaction costs and location fixity. Rodríguez and Bustillo (2010) concluded that the eclectic approach may be viewed a more complete way to look for determinants of FREI. Therefore, it can be concluded that FREI (similar to FDI in services and manufacturing 3 ) should be explained by combination of existing theoretical models.…”

The Effects of Transaction Costs, Landlord and Tenant Practices and Property Rights on Foreign Real Estate Investment

“…It is also believed that the increased FREI raises the tourism in the host countries as tourism is the step that follows acquiring a property in a foreign country. This can influence tourism when the previous investment in real estate is introduced (Rodriguez and Bustillo, 2010).…”

“…It should be noted that some observers believe that that FREI may drive up real estate prices and contribute a long-lasting real estate bubble in some recipient economies (e.g.,Rodríguez and Bustillo, 2010). at East Tennessee State University on June 8, 2015 mar.sagepub.com Downloaded from 354 Margin-The Journal of Applied Economic Research 7 : 3 (2013): 351-370…”