When Real Estate Goes Global: Tracking the Surge in Land Investment and Its Consequences

Global — “Land is now a global asset class — but its commodification has real-world consequences for equity, sovereignty, and sustainability.”— Panellist (World Bank Land Conference 2024 — Land Governance Panel)

While the global uptick in real estate investment has marked a welcomed shift for investors, there are now growing concerns over land speculation, displacement and erosion of local governance. (Photo: Nicholas J. Klein)

Global real estate investment has reached unprecedented heights, with trillions of dollars flowing into land and property markets from institutional investors, sovereign wealth funds, and private equity. While this trend is driving new development, it’s also triggering widespread concern over land speculation, displacement, and erosion of local governance.

According to a 2025 joint report by PwC and the Urban Land Institute, international capital is transforming land into one of the most aggressively sought-after asset classes — especially in emerging markets where legal systems may lack the transparency or safeguards to protect local rights.

The Rise of “Land as Asset”

Between 2015 and 2024, global cross-border real estate investment rose by over 40%, according to JLL Research, with major increases in the residential, agricultural, and commercial land sectors. Investors are increasingly targeting rapidly urbanizing cities in Sub-Saharan Africa, agricultural belts in Southeast Asia and Latin America, and energy-transition zones such as solar and wind corridors in the Global South.

Private equity funds and REITs (Real Estate Investment Trusts) are packaging large parcels of land — sometimes thousands of hectares — as part of diversified portfolios. “What we’re seeing is the financialization of the very ground people live on,” said Dr. Li Xinyu, land rights economist at the University of Toronto. “In some cases, it’s more lucrative to sit on undeveloped land than to build or farm it.”

Consequences for Land Governance

This flood of investment can overwhelm or sidestep national and local land governance systems. Recent examples include foreign agribusiness leases in Ethiopia that have displaced smallholder farmers without formal compensation, luxury real estate booms in Nairobi and Accra that are pushing low-income residents out of city cores, and so-called “green grabbing” where land is acquired for carbon offset projects with minimal local consultation.

In each case, communities often lack secure land tenure, making them vulnerable to displacement despite occupying land for generations. “Without transparency in how land is acquired, registered, and taxed, it’s the poor who pay the hidden cost of these deals,” said Fatima Diallo, legal advocate with Landesa Africa.

Are Safeguards Catching Up?

Governments are scrambling to keep up with the pace of land commodification. Some countries have responded with reforms aimed at improving land governance. Brazil, for instance, introduced land registries tied to environmental accountability through its CAR system.

Indonesia has launched participatory mapping efforts under its One Map Policy. In Europe, Scotland is advancing a Land Reform Bill to increase transparency over large landholdings.

Despite these efforts, many gaps persist, especially in areas where local governance is weak or under-resourced.

Toward Responsible Investment

Global development institutions are now advocating for standards that ensure responsible land investment. These include free, prior, and informed consent (FPIC), mandatory public disclosures of land deals, and community benefit-sharing agreements.

“Private capital can play a role in sustainable development — but not without rules that protect rights and ecosystems,” argues Joanna Mensah, lead author of UN-Habitat’s 2024 report on urban equity.