The purpose of this paper is to provide an analysis of the evolution of institutional arrangements to support the internationalisation of real estate involvements in European markets.
Using a broadly institutional economics approach to markets the paper first outlines a market rational for institutional arrangements to support internationalisation and then examines how such arrangements have evolved in the context of European real estate markets.
Significant new institutional arrangements have evolved to support the internationalisation of real estate involvements in Europe. The need to address the information costs and new information requirements necessitated by internationalisation has been a key driver of institutional formation. Both regulatory and informal barriers to internationalisation have also been important drivers of the evolution of new institutional arrangements to support internationalisation. Taken collectively the new institutional arrangement identified should be viewed as a significant step change in the structure of European real estate markets. Broad market evidence points to the success of these arrangements.
The paper provides the first systematic account of the evolution of new institutional arrangements to support the internationalisation of real estate involvements in Europe. It identifies the key drivers of institutional formation and provides a sketch of the key characteristics of the institutions which have evolved.
