domestic investments

Strategies of Real Estate Investments in the Domestic and Foreign Markets

The current stage of globalization demonstrates a completely failure of local business and authorities to reflect the expansion of transnational investment and construction capital which is rapidly increasing its influence on the development of the national real estate markets. The problem lies in the inability to explain adequately and predict accurately the nature of the impact of this factor without proper understanding of the differences in the strategies of domestic and foreign investment in real estate. Methodology. The solution of the problem require rejection of the liberal economic concepts and usage the provisions of the classical political economy, which operates with a separate descriptions of the real estate as goods and as capital. The temporal and structural analysis of investments takes the central place in the study. Analysis. Analysis is based on empirical data, including facts on investment activity in the real estate of Russia, India, USA, China and the World in general. We show inability of the division investments through the basis of legal subjectivity «resident–non-resident». Domestic and foreign strategies vary according to all indicators of business: types of collateral, frequency of investments, their turnover, degree of dominance in the national real estate market in different periods of its development cycle. Results. As a result, we have for the first time identified and explained the variability of rhythmic strategies of foreign players associated with the dynamics of the financial and economic condition of the domestic real estate market. It was revealed that domestic businesses needs in state support that must limit the freedom of the repatriation of foreign investments.