Land as a 'Safe Haven': How Investors Are Reshaping Urban Property Markets

Editorial — Across the skylines of London, Nairobi, New York, and Manila, a quiet transformation is underway. Empty luxury high-rises, rapidly gentrifying neighbourhoods, and surging property values all tell the same story: urban land is no longer just a place to live — it is a place to park capital.

London's skyline is an opt reflection of a rapidly evolving urban land and property market fuelled by major foreign-direct and private equity investments (Photo: Wallace)

As cities become increasingly financialised, property markets are being reshaped by institutional investors, private equity firms, foreign buyers, and speculative developers. This trend has far-reaching consequences — not least of which is the growing tenure insecurity among long-time residents, low-income tenants, and informal settlers.

For many, land is no longer a right to shelter or livelihood — but an asset class, decoupled from local needs. And as capital flows into real estate, the gap between ownership and occupancy widens, often leaving the most vulnerable behind.

The Rise of Real Estate as a Global Asset Class

Real estate now accounts for more than 60% of global wealth, with a growing share held by corporations, sovereign wealth funds, and international investors. In major cities, housing is being commodified at unprecedented scales — bought not to be lived in, but to generate returns through resale, rent extraction, or tax sheltering.

In cities like Berlin, Toronto, and Accra, this has led to inflated land values, displacement of working-class communities, and a decline in affordable housing stock. In London, nearly 40% of new-build homes in some boroughs are sold to overseas investors. In Johannesburg, luxury developments rise next to informal settlements where residents face eviction for lacking formal title.

These capital flows are driven by low interest rates, weak financial regulation, and a global appetite for “safe haven” investments in stable urban environments. But they are reshaping the urban fabric — and the tenure landscape — in ways that demand greater scrutiny.

Displacement by Design

Investment-driven development often leads to gentrification, evictions, and exclusion. Once land becomes a speculative asset, its value is maximized not by maintaining existing communities, but by removing them.

This can take subtle forms: rising rents that push families out, rezoning laws that favor upscale developments, or property taxes that make traditional housing unaffordable. In other cases, it is more direct: forced evictions to clear land for high-end projects, or the demolition of informal settlements in the name of “modernization.”

In Manila, the expansion of real estate corridors has displaced thousands of urban poor households with limited access to legal remedies. In Nairobi, elite capture of urban land has fueled both informal settlements and frequent evictions, often without compensation. In New York, private equity landlords have aggressively acquired rent-stabilized housing, using legal loopholes to displace long-term tenants.

The result is not just a housing crisis — but a tenure crisis, in which people lose their ability to remain in place, assert claims, or access secure shelter.

Who Gets to Stay — and Who Profits?

The growing financialization of land has also introduced opacity into urban land markets. Property ownership is increasingly routed through shell companies, offshore accounts, and anonymous trusts. This lack of transparency makes it harder to hold investors accountable for harmful practices — or to design policies that protect residents.

Moreover, existing tenure systems are often ill-equipped to deal with speculative pressures. In many countries, land registries are outdated, fragmented, or inaccessible to the public. This creates space for manipulation, dispossession, and legal ambiguity — especially for those in informal housing.

The people most affected are often those least recognized: renters without contracts, informal settlers without documentation, or residents whose land is collectively held under customary systems.

For them, tenure insecurity is not just legal — it is existential. It means living with the threat of displacement, lacking recourse, and being unable to pass on property rights across generations.

Rethinking Urban Land Policy

The dominance of capital in urban land markets raises urgent policy questions: (1) How can cities balance investment with affordability? (2) What mechanisms can protect the tenure of residents in rapidly gentrifying areas? and (3) Can land value gains be captured and redirected toward public good?

Several cities are experimenting with answers. Barcelona and Berlin have introduced rent caps and limits on foreign ownership. New York has strengthened tenant protections and transparency requirements for landlords. In Kigali, Rwanda, land value capture mechanisms help finance public infrastructure in rapidly urbanizing zones.

At a broader level, some scholars and activists are calling for a reframing of land as a commons, not a commodity — emphasizing the social function of property over its financial yield.

The Role of Donors and Development Actors

Development finance institutions and multilateral donors have a role to play in curbing the worst effects of urban land speculation. While promoting private investment, they must also support: (1) Strengthened tenure systems that include renters, informal dwellers, and marginalised groups; (2) Transparent land registries and public access to ownership data; and (3) Inclusive zoning policies that ensure mixed-income housing and community land trusts.

Without such safeguards, well-intentioned investments can inadvertently worsen inequality and tenure insecurity.

At LPN Global, we view the financialisation of land not as an abstract trend — but as a daily, lived reality for millions. It is a force reshaping who gets to own, occupy, and control urban space. And in that reshaping, it often marginalises the very people cities are meant to serve.

Through our research, reporting and partnerships, we are tracking how capital flows influence land tenure outcomes across the globe. We are also elevating voices from the ground — residents, experts and policymakers — who are pushing back and reimagining more equitable urban futures.

Because tenure security should not be a casualty of capital. It should be a precondition for sustainable, inclusive cities.