The internationalization of commercial real estate markets in France and Germany

Abstract

This paper investigates the internationalization of the commercial real estate markets of France and Germany, markets typically ignored in comparative political economy. Although both markets are embedded in Continental European capitalism, their trajectories of internationalization are variegated. After exploring how processes of internationalization are processed within each country, we show how these processes have played out in the commercial real estate markets of France and Germany. The French state played a key role in guiding processes of internationalization: the introduction of new tax regimes allowed French property companies to raise capital at the stock exchange. The case of Germany demonstrates the continued importance of the banking sector for real estate investment markets. Although the typical characteristics of the French and German political economies are strengthened in this process, agents also feel the need to respond to the interests of international investors by creating Real Estate Investment Trust-like systems to absorb domestic and foreign capital.