International Investments in Luxury Real Estate: An Evaluation of International Real Estate Investors and Developers Entering a Cross-Continental Market

Abstract

International investments in luxury real estate can be a complex and challenging endeavor, as investors and developers must navigate a variety of issues, including cultural differences, legal and regulatory frameworks, and market conditions. The goal of this research was to investigate how success can be achieved in a cross-continental market and the role of international investors and developers in evaluating the risks and opportunities presented by the market, as well as building relationships with local partners and experts who can help them navigate the local landscape. The study also considered Dubai and the United States as two major players in the global luxury real estate market, offering a range of opportunities for investors. In Dubai, the market is primarily driven by demand for high-end properties from wealthy individuals looking for a second or vacation home, as well as investors seeking to take advantage of the city's strong rental market. The United States has a more diverse luxury real estate market, with demand coming from a variety of sources. The research was based on interviews with two industry executives from the United States; John Grossman, the Chief Executive Officer of Grossman Company Properties and Scott Lockwood, Regional Vice President of Development, from Cambria Hotels by Choice Hotels International. The findings indicate that their experience in the local market, as well as relying on thorough market research, enables them to understand local trends and conditions. The study also found that local laws and regulations have played a role in shaping the luxury real estate markets, with some countries, states, and cities offering more favorable conditions for investors than others.