INTERNATIONAL RE Reasons for Trade

Types of RE investment (10m) a) Differences in technology

- Differences in their technological abilities to
1. Direct Investment
produce goods and services.
- involves purchasing and owning physical
- technology refers to the techniques used to
properties directly.
convert resources (labor, capital, land) into
- Ownership: Investors have direct
outputs.
ownership and control over the specific
- Example: countries known for their
property or properties they acquire.
advanced construction techniques, such as
- Capital: Huge amount of capital required.
Japan with its earthquake-resistant
- Liquidity: Less liquidity as compared to
buildings, may attract international
indirect investment, due to the large
investors seeking properties with cutting-
amount of capital required to invest, a
edge technology and safety standards.
limited pool of investors.
- Active Involvement: Investors are
b) Differences in resource endowments
responsible for property maintenance,
- Resources endowments refers to the skills
tenant relations, and day-to-day operations.
and abilities of a country’s workforce, the
- Diversification of Assets: No
natural resources available within its
diversification of assets and risk as all the
borders (mineral, farmland, etc) and the
risk and investment is done in one asset
sophistication of its capital stock
only.
(machinery, infrastructure, communication
- Transaction & Management costs: High
systems)
T&M costs.
c) Different in demand
2. Indirect Investment
- Preferences and demand differ between
- involves buying shares in a fund or
countries.
stocks/shares in companies that invest in
- Why – individuals in different countries may
real estate.
have different preferences or demand for
- Investors hold financial instruments (e.g.,
various products.
REITs, mutual funds) that represent
- Example: The Chinese are more likely to
ownership or exposure to real estate
demand more rice than the British. Scots
assets.
might demand more whisky and the
- Ownership: They do not have the
Japanese more fish even if they all faced
ownership right and controlling power on
the same price.
the assets.
- Capital: Low quantum of capital required.
d) Existence of government policies
- Liquidity: Indirect investments offer high
- Govt tax and subsidy programs can be
liquidity, as investors can buy and sell
sufficient to generate advantageous in
shares or units in the financial instrument
production of certain products.
representing the underlying real estate
- Tax incentives, foreign ownership
assets.
allowances, and investment-friendly
- Passive Involvement: Investors rely on
legislation encourage international
professional managers for property
investors.
management decisions and operations.
- Singapore's real estate rules have
- Diversification of Assets: Diversification
encouraged major international
of assets and risk across different regions
transactions and development initiatives.
and several sectors.
- Transaction & Management costs: Low
e) Differences in return on capital
T&M costs.
- Countries with higher potential returns on
real estate investments, whether through
rental income or capital appreciation, can
 attract international investors seeking
profitable ventures.
- Example, emerging markets like Vietnam
or Colombia have experienced rapid
economic growth and increasing property
values, attracting international investors
seeking higher returns.
f) Existence of economies of scale in
production
Reasons for Foreigner to Invest in Malaysia RE
Market (15m)
1. Stable Economy
- Malaysia has a stable and growing
economy, making it an attractive
destination for real estate investment.
- The country has experienced consistent
GDP growth over the years, supported by
strong economic fundamentals and
government initiatives to promote
investment and business development.
2. Favorable Government Policies
- The Malaysian government has
implemented various policies to encourage
foreign investment in the real estate sector.
- Non-residents can purchase property in
Malaysia, subject to certain guidelines and
regulations.
- Additionally, initiatives such as the
Malaysia My Second Home (MM2H)
program offer long-term visa options for
foreign investors, further facilitating their
presence in the country.
3. Diverse Investment Opportunities
- Malaysia offers a diverse range of real
estate investment opportunities.
- From residential properties to commercial
spaces, industrial facilities, and even
agricultural land, investors have a wide
variety of options to choose from.
- The property market caters to different
investment goals and preferences,
allowing for potential income generation
and capital appreciation.
4. Strategic Location
- Malaysia's strategic location in Southeast
Asia provides access to regional markets
and opportunities.
- With well-developed infrastructure and
transportation networks, the country serves
as a hub for trade and commerce.
- This connectivity enhances the potential for
businesses and investors looking to tap
into regional markets, making it an
attractive destination for international
investors.
5. Growing Tourism Industry
- Malaysia's thriving tourism industry
presents opportunities for real estate
investment.
- The country attracts millions of tourists
each year, with popular destinations like
Kuala Lumpur, Penang, and Langkawi.
- Investing in tourism-related properties such
as hotels, resorts, or vacation rentals can
provide income potential through tourism-
driven rental demand.
6. Affordable Property Prices
- Compared to some other global property
markets, Malaysia offers relatively
affordable property prices.
- Foreign investors can find attractive
opportunities to enter the market and
potentially benefit from long-term price
appreciation.
- This affordability factor, coupled with
Malaysia's growing economy, makes it an
appealing choice for real estate investment.
7. Strong Rental Market
- The rental market in Malaysia is robust,
driven by a growing population,
urbanization, and expatriate demand.
- Foreign investors can benefit from steady
rental income by investing in residential or
commercial properties and leasing them to
tenants.
- Rental yields in Malaysia are often
considered attractive compared to many
other international markets.
8. Cultural Diversity and Quality of Life
- Malaysia is known for its rich cultural
diversity, excellent infrastructure, and high
quality of life.
 - The country offers a vibrant lifestyle with a
mix of modern amenities and natural
attractions.
- These factors contribute to the
attractiveness of Malaysia as a destination
for foreign investors seeking both financial
returns and a desirable living environment.
Reasons that Prevent Foreign Companies to
Operate in an IRE (10m)
1. Regulatory and Legal Hurdles
- Foreign companies often face complex
regulatory frameworks and legal
requirements when entering a new real
estate market.
- Each country has its own set of laws,
regulations, and licensing requirements
that can be intricate and time-consuming to
navigate.
- Compliance with local regulations, such as
foreign ownership restrictions or tax laws,
can pose challenges for foreign companies.
2. Cultural and Language Barriers
- Operating in a foreign real estate market
involve dealing with different cultural norms,
business practices, and languages.
- Understanding and adapting to local
customs and business etiquette can be
crucial for building relationships and
negotiating deals.
- Language barriers may also impede
effective communication and
understanding of legal documentation and
contracts.
3. Market Knowledge and Understanding
- Lack of familiarity with the local market
dynamics, economic conditions, and
market trends can hinder foreign
companies' ability to make informed
investment decisions.
- Local market knowledge is essential for
identifying viable investment opportunities,
understanding supply and demand
dynamics, and pricing properties
accurately.
- Without proper market intelligence, foreign
companies may face challenges in
competing effectively in the local market.
4. Political and Geopolitical Risks
- Political stability and geopolitical factors
can significantly impact international real
estate operations.
- Political instability, changes in government
policies, or conflicts can create uncertainty
and affect investment prospects.
- Foreign companies must carefully assess
the political and geopolitical risks of a target
market to mitigate potential disruptions to
their operations and investments.
5. Access to Financing and Capital
- Foreign companies may encounter
difficulties in accessing financing or capital
in a foreign real estate market.
- Local financial institutions may have strict
lending criteria or limited exposure to
foreign entities.
- Securing funding for real estate projects
can be challenging without established
relationships or a track record in the local
market.
6. Local Competition and Market
Saturation
- Some international real estate markets
may already be saturated with established
local players.
- Foreign companies may face intense
competition from local developers,
investors, or real estate firms.
- Building a competitive edge and
establishing a strong market presence can
be difficult in such scenarios.
7. Economic and Currency Risks
- Economic fluctuations, currency risks, and
exchange rate risks can impact
international real estate operations.
- Currency devaluations or economic
downturns can affect property values,
rental incomes, and financing costs.
- Foreign companies need to carefully
assess and manage these risks to protect
their investments and profitability.
Why investor from CHINA like to invest in
Malaysia in the view of PESTLE?
1. Economic Factors:
- Economic Growth: Malaysia has
experienced stable economic growth over
the years, making it an attractive
investment destination for Chinese
investors seeking opportunities in a
growing market.
- Trade Agreements: Malaysia's participation
in trade agreements such as the ASEAN-
China Free Trade Agreement and the
Regional Comprehensive Economic
Partnership (RCEP) enhances its
economic ties with China, providing
favorable conditions for investment.
2. Socio-cultural Factors:
- Ethnic Chinese Population: Malaysia has a
significant ethnic Chinese population,
which fosters cultural familiarity and ease
of doing business for Chinese investors,
Why investor from AFRICA like to invest in
promoting social integration and facilitating
Malaysia in the view of PESTLE?
business relationships.
- Cultural Proximity: Similar cultural values,
traditions, and business practices between
China and Malaysia can create a
conducive environment for Chinese
investors, reducing potential cultural
barriers.
3. Political Factors:
- Stable Political Environment: Malaysia has
a relatively stable political landscape,
providing a conducive environment for
foreign investments and ensuring a
predictable regulatory framework.
- Government Initiatives: Malaysia's
government actively promotes foreign
investments through initiatives like the
Malaysia Investment Development
Authority (MIDA) and various tax incentives,
attracting Chinese investors seeking
government support.
4. Technological Factors:
- Infrastructure Development: Malaysia has
made significant investments in
infrastructure, including ports, railways,
and technology parks, offering a robust
foundation for Chinese investors to
establish their operations and facilitate
efficient logistics.
5. Legal Factors:
- Investment Protection: Malaysia offers
legal safeguards for foreign investors,
including the protection of intellectual
property rights, fair dispute resolution
mechanisms, and transparent regulatory
processes, which are crucial for Chinese
investors concerned about legal security.
6. Environmental Factors:
- Renewable Energy Potential: Malaysia's
commitment to renewable energy
development presents opportunities for
Chinese investors involved in clean energy
technologies, such as solar and wind power,
as the country aims to reduce carbon
emissions and diversify its energy sources.
1. Economic Factors:
- Market Potential: Malaysia's growing
consumer market presents attractive
investment opportunities for African
investors looking to expand their business
ventures in a new market with a rising
middle class and increasing purchasing
power.
- Natural Resources: Malaysia's abundance
of natural resources, such as palm oil,
rubber, and timber, can attract African
investors seeking access to these
resources for their industries.
2. Socio-cultural Factors:
- Cultural Diversity: Malaysia's multicultural
society and openness to diverse cultures
create an environment where African
investors may find it easier to establish
relationships, collaborate, and integrate
their businesses within the Malaysian
market.
- Education and Tourism: Malaysia's
reputation as an education and tourism hub
can be appealing to African investors
looking to tap into these sectors or
collaborate with Malaysian institutions.
 3. Political Factors:
- Stable Political Environment: Malaysia's
political stability provides a favorable
climate for foreign investments, offering
predictability, consistency, and a 2. Legal and Regulatory Environment:
transparent regulatory framework for
African investors.
- Bilateral Relations: Malaysia maintains
diplomatic ties with many African nations,
fostering friendly relations that can facilitate
investment cooperation, trade agreements,
and investment protection.
4. Technological Factors:
- Technological Advancements: Malaysia's
focus on technological development,
including initiatives like the Digital Malaysia
and Industry 4.0, can attract African
investors seeking access to advanced
technology, innovation, and expertise in
specific sectors.
5. Legal Factors:
- Investment Protection: Malaysia offers
legal safeguards for foreign investors,
ensuring the protection of intellectual
property rights, fair dispute resolution
mechanisms, and transparent legal
processes, which can provide assurance to
African investors concerned about legal
security.
6. Environmental Factors:
- Green Initiatives: Malaysia's commitment
to environmental sustainability, including
efforts to preserve its natural resources and
promote renewable energy, can align with
the priorities of African investors who
prioritize sustainability and ESG
(Environmental, Social, and Governance)
principles.
How does a company invest in other countries?
What factors need to be considered?
1. Market Research:
- Conduct comprehensive market research
to understand the target country's
economic environment, market dynamics,
consumer behavior, and competitive
landscape.
- Factors to consider include market size,
growth potential, demographics, cultural
preferences, and regulatory framework.
- Understand the legal and regulatory
requirements in the target country.
- Consider factors such as foreign
investment regulations, business formation
procedures, intellectual property protection,
tax laws, labor laws, and compliance
obligations.
- Consult legal experts to ensure compliance
and mitigate legal risks.
3. Political and Economic Stability:
- Evaluate the political stability and
economic conditions of the target country.
- Consider factors such as political climate,
government policies, exchange rate
stability, inflation rates, and economic
growth.
- A stable and predictable political and
economic environment reduces investment
risks.
4. Risk Assessment:
- Conduct a thorough risk assessment,
identifying and evaluating potential risks
and challenges associated with investing in
the target country.
- Assess political risks, legal risks,
operational risks, market risks, currency
risks, and any other relevant factors.
- Develop risk mitigation strategies to
manage and minimize potential risks.
5. Entry Strategy:
- Develop an entry strategy that aligns with
the company's objectives and market
conditions.
- Options include establishing a subsidiary
or branch office, forming a joint venture or
strategic partnership with a local company,
acquiring an existing business, or entering
into licensing or franchising agreements.
- Evaluate the advantages and
disadvantages of each entry mode.
6. Operational Considerations:
- Assess operational requirements such as
supply chain management, logistics,
staffing, and talent availability.
 - Understand the local labor market, - Collaboration between sectors can bring
recruitment practices, and employment about social benefits, such as community
regulations. development, inclusivity, and improved
- Evaluate infrastructure, transportation social services.
networks, and access to necessary - Example:
resources for smooth business operations. - Corporate-Social Responsibility (CSR)
Initiatives: Collaboration between
7. Local Partnerships and Networks: businesses and non-governmental
- Establish local partnerships and networks organizations (NGOs) can address social
to navigate the business environment and issues and support community
gain insights into the target country's development.
market. - For instance, partnering with NGOs to
- Collaborating with local businesses, provide educational programs, healthcare
industry associations, and government services, or environmental initiatives can
agencies can provide valuable support, contribute to social well-being.
market knowledge, and connections. -
4. Technological:
- Collaboration between sectors can
What is the benefit if Malaysia collaborating facilitate technological advancements,
with other sector in terms of PESTLE? Give knowledge sharing, and innovation.
example for each PESTLE - Example:
- Government-Industry Collaboration:
1. Political: Collaborating with technology companies
- Collaboration between the government and and startups can drive digital
other sectors can lead to various political transformation initiatives and promote the
benefits, such as policy alignment, effective adoption of emerging technologies.
governance, and improved public services. - Joint efforts to develop smart city solutions,
- Example: e-governance systems, or digital
- Public-Private Partnerships (PPPs): infrastructure can enhance technological
Collaborating with the private sector in capabilities and competitiveness.
infrastructure development projects (such
as building highways or public 5. Legal:
transportation systems) can help address - Collaboration between sectors can
transportation challenges, enhance contribute to the development of effective
connectivity, and improve the overall legal frameworks, compliance standards,
quality of life for citizens. and regulatory systems.
- Example:
2. Economic: - Industry-Regulatory Collaboration:
- Collaboration between sectors can drive Working closely with regulatory bodies and
economic growth, stimulate investment, industry associations can lead to the
and promote job creation. establishment of clear regulations,
- Example: standards, and licensing processes.
- Industry-Academia Collaboration: - Collaboration in areas like financial
Partnering with academia and research services, healthcare, or environmental
institutions can foster innovation, research regulations ensures compliance, consumer
and development, and the protection, and a fair business environment.
commercialization of technology. This
collaboration can lead to the creation of 6. Environmental:
new industries, attract investment, and - Collaboration between sectors can drive
boost economic competitiveness. sustainable practices, environmental
conservation, and green initiatives.
3. Social: - Example:
 - Public-Private Collaboration for
Sustainability: Collaborating with
businesses, civil society organizations, and
government agencies can lead to joint
efforts in promoting renewable energy,
waste management, and sustainable
development.
- For instance, partnering with renewable
energy companies to develop solar or wind
farms can contribute to Malaysia's clean
energy transition.
What is The Impact & Example When Malaysia
Dealing with IRE?
1. Economic Growth and Foreign Direct
Investment (FDI):
- International real estate dealings can
contribute to Malaysia's economic growth
by attracting foreign direct investment.
- Example:
- The Iskandar Malaysia development in
Johor has seen significant investment from
foreign buyers, including Singaporean
investors.
- This has stimulated the local real estate
market, created job opportunities, and
boosted economic activities in the region.
2. Property Market Dynamics:
- Engaging in international real estate
dealings can influence Malaysia's domestic
property market dynamics.
- Foreign investors can have an impact on
pricing, demand patterns, and property
trends in certain segments.
- Example:
- The influx of Chinese investors in
Malaysian properties, particularly in the
residential sector.
- This has contributed to increased demand
and rising prices in some areas.
3. Infrastructure and Urban Development:
- International real estate dealings often
involve large-scale development projects,
leading to infrastructure and urban
development.
- These projects can improve the overall
infrastructure of a region and enhance its
attractiveness for residents, businesses,
and tourists.
- The Kuala Lumpur City Center (KLCC) is a
prominent example of international
investment in real estate that has
transformed Kuala Lumpur's skyline and
spurred the development of a modern
commercial and residential hub.
4. Tourism and Hospitality Industry:
- International real estate investments can
boost the tourism and hospitality industry.
- When foreign investors acquire or develop
hotels, resorts, or serviced apartments, it
increases the capacity to accommodate
international visitors.
- For instance, the entry of international hotel
chains in Malaysia, such as Marriott and
Hilton, has expanded the country's
hospitality offerings and helped attract
more tourists.
5. Knowledge Transfer and Expertise:
- Engaging in international real estate
dealings allows for knowledge transfer and
expertise acquisition.
- Malaysian developers and investors gain
exposure to international best practices,
innovative design concepts, and
construction technologies.
- For example, the development of Forest
City in Johor, which is backed by a Chinese
developer, has brought advanced
construction techniques and sustainability
practices to Malaysia.
6. Branding and Image Enhancement:
- International real estate projects can
contribute to enhancing Malaysia's
branding and image on the global stage.
- Iconic developments like the Petronas Twin
Towers in Kuala Lumpur have become
recognizable landmarks and symbols of
Malaysia's progress.
- Such projects showcase the country's
architectural achievements and attract
international attention, boosting tourism
and investor confidence.
7. Cross-Cultural Exchange:
- International real estate dealings foster
cross-cultural exchange and diversity.
- When foreign buyers invest in Malaysian
real estate, it creates opportunities for
cultural integration and diversity within
 communities. This contributes to a
multicultural environment and enhances
social cohesion.
- For instance, developments like Mont'Kiara
in Kuala Lumpur have attracted a mix of
expatriates, creating a diverse community
with various cultural influences.
What is the implication to government when
Malaysia collaborate with other country in the
view of IRE? (20m)
1. Economic Growth and Investment:
- Collaboration in international real estate
can attract foreign direct investment (FDI)
into Malaysia's real estate sector,
stimulating economic growth and
contributing to job creation.
- The government benefits from increased
tax revenues generated through real estate
transactions and related economic
activities.
2. Infrastructure Development:
- Collaboration in international real estate
often involves the development of large-
scale infrastructure projects, such as
integrated townships or commercial
complexes.
- These projects contribute to the
government's goals of improving
infrastructure and urban development.
- The government may partner with foreign
investors or companies to leverage their
expertise and resources in implementing
infrastructure projects.
3. Skills and Knowledge Transfer:
- Collaborating with other countries in real
estate projects allows for the transfer of
skills, knowledge, and best practices to the
local workforce.
- This enhances the capabilities and
expertise of local professionals in the real
estate industry.
- The government can promote training
programs, joint ventures, or knowledge-
sharing initiatives to facilitate the transfer of
skills and expertise.
4. Diplomatic Relations and Image
Building:
- Real estate collaborations with other
countries can strengthen diplomatic
relations and foster goodwill.
- Successful collaborations enhance
Malaysia's reputation as an attractive
investment destination and a trusted
partner in international business ventures.
- The government can leverage real estate
collaborations to enhance its diplomatic
ties and promote cultural exchange with
partner countries.
5. International Image and Attraction of
Global Talent:
- Successful real estate collaborations with
renowned international partners enhance
Malaysia's global image as an investment
destination and can attract skilled
professionals and talent to the country.
- The government can leverage these
collaborations to promote Malaysia as a
hub for real estate expertise, encouraging
international professionals to contribute to
the local industry.
6. Tourism and Hospitality Industry Boost:
- Real estate collaborations that involve the
development of tourism-related properties,
such as hotels, resorts, or entertainment
complexes, can contribute to the growth of
Malaysia's tourism and hospitality industry.
- The government benefits from increased
tourist arrivals, job creation, and revenue
generation through tourism-related
activities
Compare international real estate market by
using appropriate case study as an example.
Comparison includes economic condition,
political condition, governance and real estate
and investment condition.
1. Economic Conditions:
United States:
 - The U.S. has the world's largest economy,
characterized by its diversity, innovation,
and strong consumer market.
- Historically, the U.S. real estate market has
shown resilience and consistent growth,
although it can be subject to economic
cycles and localized market variations.
- Factors such as GDP growth, employment
rates, inflation, and interest rates impact
the overall economic conditions and,
consequently, the real estate market.
Germany:
- Germany has the largest economy in
Europe, known for its stability, export-
oriented industries, and strong
manufacturing sector.
- The German real estate market has
experienced steady growth, driven by
factors such as population growth, low-
interest rates, and urbanization.
- The country's economic stability and
relatively affordable housing make it an
attractive market for both domestic and
international investors.
2. Political Conditions:
United States:
- The U.S. has a stable political environment
characterized by a democratic system and
regular elections.
- Policies related to taxation, regulations,
and government spending can impact the
real estate market, such as incentives for
homeownership, infrastructure
development, and zoning regulations at the
federal, state, and local levels.
- Political shifts and changes in
administrations can introduce policy
changes that affect real estate investment
and market conditions.
Germany:
- Germany is known for its stable political
landscape, with a federal parliamentary
republic system.
- Government policies focus on sustainability,
energy efficiency, and affordable housing,
influencing the real estate market.
- The political environment promotes
stability and long-term planning, providing
a favorable investment climate for real
estate investors.
3. Governance:
United States:
- The U.S. has a decentralized governance
structure, with real estate regulations
varying across states and local jurisdictions.
- The legal framework ensures property
rights protection, contract enforcement,
and transparency.
- The U.S. has a well-established financial
system, including mortgage markets, which
facilitates real estate transactions and
financing options.
Germany:
- Germany has a well-regulated governance
system, with consistent and transparent
property laws.
- The legal framework ensures property
rights protection, tenancy regulations, and
consumer protection.
- Germany has a strong financial sector,
providing stable mortgage markets and
various financing options for real estate
investors.
4. Real Estate and Investment Conditions:
United States:
- The U.S. real estate market offers a wide
range of investment opportunities,
including residential, commercial, and
industrial properties.
- Cities like New York, Los Angeles, and San
Francisco are major global real estate
markets with high demand and potential for
significant returns.
- The market has a diverse range of
investment instruments, including real
estate investment trusts (REITs), private
equity funds, and direct property ownership.
Germany:
- The German real estate market offers
stability, affordability, and attractive rental
yields.
 - Major cities like Berlin, Munich, and
Frankfurt are renowned for their strong real
estate markets.
- The market provides opportunities for both
residential and commercial investments,
with a focus on long-term rental income
rather than speculative gains.
Propose five strategies for Swedish company
to mitigate the risk involved with the cultural
differences (20m/12m)
1. Cross-Cultural Training and Awareness:
- Provide comprehensive cross-cultural
training to employees who will be working
in international settings.
- This training should cover cultural norms,
values, communication styles, and
business practices of the target country.
- By promoting cultural awareness,
employees can navigate cultural
differences more effectively and avoid
misunderstandings.
2. Local Partnerships and Hiring Local
Talent:
- Establish partnerships with local
companies or hire local employees who
have a deep understanding of the local
culture, customs, and business practices.
What is the current issues that can impact
- Local partners can provide valuable
international real estate business?
insights, help bridge cultural gaps, and
navigate local regulations.
- Local employees can serve as cultural
intermediaries and contribute to building
strong relationships with local stakeholders.
3. Adaptation of Marketing and
Communication Strategies:
- Tailor marketing and communication
strategies to align with the cultural
preferences and sensitivities of the target
market.
- This includes adapting language, visual
elements, messaging, and promotional
activities to resonate with the local
audience.
- Avoiding cultural faux pas and
demonstrating cultural sensitivity in
marketing campaigns can enhance the
company's reputation and appeal to local
customers.
4. Flexible Management Approach:
- Adopt a flexible management approach
that recognizes and accommodates
cultural differences.
- This involves adjusting leadership styles,
decision-making processes, and
organizational structures to suit the cultural
context.
- Encourage open dialogue, actively listen to
diverse perspectives, and foster a
collaborative and inclusive work
environment that values cultural diversity.
5. Continuous Learning and Adaptation:
- Maintain a learning mindset and
continuously adapt strategies based on
feedback and experiences in the target
market.
- Encourage employees to actively engage
with the local culture, learn from local
stakeholders, and identify opportunities for
improvement.
- Embrace feedback and make necessary
adjustments to business practices,
products, and services to better align with
the cultural expectations of the target
market.
1. Global Economic Uncertainty:
- Economic uncertainty, such as recessions,
trade disputes, or geopolitical tensions, can
have a significant impact on international
real estate markets.
- Example:
- the COVID-19 pandemic and subsequent
economic downturn affected real estate
sectors worldwide, with declines in
property values, reduced demand, and
disruptions in construction and
development projects.
2. Regulatory Changes and Political
Stability:
- Changes in regulations or political
instability in a country can significantly
impact international real estate
investments.
- Example:
- shifts in government policies, tax laws, or
restrictions on foreign ownership can
create uncertainty and affect investor
sentiment. In 2020, Hong Kong witnessed
political unrest, which led to a decline in
real estate prices and investor caution.

3. Environmental Concerns and Climate

Change:
- Environmental factors and climate change
issues can affect international real estate
investments.
- Rising sea levels, extreme weather events,
and changing environmental regulations
can impact coastal properties or properties
located in regions vulnerable to natural
disasters.
- Example:
- properties in areas prone to hurricanes or
coastal erosion may face increased
insurance costs and potential damage,
affecting their market value and investment
viability.

4. Technology Disruptions and

Digitalization:
- Technological advancements and
digitalization are transforming the real
estate industry.
- Trends such as e-commerce, remote work,
and smart building technologies are
reshaping the demand for various types of
real estate assets.
- Example:
- the shift towards online retail has impacted
the demand for traditional brick-and-mortar
retail spaces, leading to vacancies and
declining rental rates.