Real estate finance in the new economic world

Content: Preface xi     Acknowledgements xiii     1 International Economic Developments since the 1970s 1     Introduction 1     International trade theories: Setting the scene 2     International goods and capital flows 3     Theoretical models of trade 7     The Dunning eclectic paradigm 19     Porter\'s model of competitive advantage of nations 24     Trading blocs and globalisation 27     Conclusions 28     Notes 28     References 28     2 International Real Estate Markets: Evolution 31     Introduction 31     Size of property market 33     User market 35     Investment market 42     Investor profile 48     Development 50     Financing of property 52     International real estate activity and trade models 55     Conclusions 59     Note 60     References 60     3 Financial Systems, Flow of Funds to Property and Innovations 63     Introduction 63     Bank-based and market-based financial systems 64     Property investors and intermediaries 67     Investment mechanisms 68     Innovations 74     Economic assessment of investment mechanisms 76     Impact of new investment mechanisms on business culture and practices 81     Conclusions 82     References 83     4 Property Investors, Investment Vehicles and Strategies 85     Size of property 85     Investment and investors 86     Property in investment portfolio 92     Investment strategies 98     Property investment and leverage 101     Conclusions 103     Appendix 4.1 104     References 107     5 Financial Markets, the New Economy and the Risk 109     Introduction 109     Value determinants of real estate in the twenty-first century 112     Theorising real estate linkages in the new economy 116     Financing of real estate in new economy 119     Leverage and risks 123     Conclusions 126     References 126     6 Real Estate Asset Bubbles 129     An introduction to cycles in real estate 129     Expectations and bubbles 136     Formation of real estate bubbles and its detection 139     Key patterns of past real estate bubbles 140     Explanations in the literature, new economy and role of credit 149     Conclusions 152     References 152     7 International Capital Flows in Property: Portfolio Diversification or Return Chasing 155     Introduction 155     Theoretical considerations in portfolio investment 159     Direct property in multi-asset portfolios 162     Direct property in property-only portfolios 164     Indirect property investment in multi-asset portfolios 165     Indirect real estate investment in real estate-only portfolios 166     Contradictions in research on diversification benefits from international property investment 167     Capital flows and property returns 168     Conclusions 170     References 170     8 International Financial Innovation, Real Estate and the Macroeconomy 175     Introduction 175     Real estate and macroeconomic interactions: Cycles and trends 175     Market cycles, risk and regional offices 187     Bubbles in asset markets 209     Risk management 210     Observations and conclusions 212     Notes 214     References 214     9 International Financial Innovation and Real Estate Market Performance 219     Introduction 219     Mortgage product development 219     Why use debt? 220     Risk analysis 222     Variable risk 223     The secondary mortgage market 224     Institutions and market performance 228     Cycles in real estate and the availability of finance 233     Conclusions 235     References 237     10 Real Estate in the New Economy 239     Introduction 239     The new economy and world economic structure 240     Real estate in the new economy 252     Overview and conclusions 255     Note 258     References 259     Index 261