Globalization of a commercial property market: the case of Copenhagen

Abstract

The study examines globalization processes in property markets through an empirical investigation into the commercial property market of Greater Copenhagen. The focus is on investment in commercial properties. Globalization of property markets is defined, a framework of analysis presented and methodological problems reported. The analysis reveals a marked increase in the volumes and shares of foreign direct investment in the Copenhagen commercial property market between 1983 and 1995, after which there occurred a marked decrease. The findings also suggest that the greater part of globalization in this case is accounted for by expansionary cross-border regionalization. Furthermore, there are manifestations of change in the stock exchange indicative of increased securitization of the market, facilitating a new round of globalization in the Copenhagen commercial property market.