Sternik G.M., Yevstafyev A.I., Petrukhin A.O. Development of national real estate markets during the expansion of foreign capital

Abstract: The macroeconomic instability that shook the world in 2008 revealed a large number of differences in the decline and recovery rates of national real estate markets. At the same time, the majority of existing scientific concepts (the neo-liberal, the globalist, the national economic) were shown to be inadequate in explaining the dynamics of those processes. Overcoming this situation would require a fundamental revision of the view on the substance of foreign property investments, studying it in isolation from all other forms of capital investments. The methodology of classic political economy is exceptionally important in this endeavour, because it allows for systemic study of international circulation of capital, and to precisely pinpoint the regularities and patterns in real estate market development in existing circumstances. Combined with graphic modeling, conducted on the basis of a vast factual material, it helps to dispel the illusion of national property market autonomy. The research conducted allowed to substantiate asynchrony in their development and to prove the deciding role of transnational investment and construction capital expansion in forming a global interdependency of national property markets.

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