I have recently been working on understanding real estate investments, mostly commercial. It is rather fascinating that I only come to one conclusion; real estate investments over a period of time, in a particular growing region will form a bubble, collapse, and start again. And that the minority incumbents in a free market system do not come out as winners either.
To validate some of my learning, here is a good analysis on real estate from the Economist:
"There is a strong correlation between economic growth and secure property rights for foreign and elite investors. But when Ms Lawson-Remer looked for a relationship between property security for minority groups and economic growth, she could find none. Nor was there any correlation between property security and a country’s ranking on the UN Development Programme’s Human Development Index. Securing the property rights of minorities seems to have no clear consequences for economic growth."
Read the complete article here.