Globalization is at a crucial turning point in its history: while there have been a series of political events to indicate a populist movement away from further global integration, the rhetoric of anti-globalization in the U.S. appears to have cooled in recent months and populist parties in the recent elections in the Netherlands and France in Europe have failed to secure power. At present, the future of globalization hangs in the balance. However, there seems to be general consent that two broad scenarios are possible:
- A temporary slowdown of the global integration process with modifications to current trading patterns and migration; and,
- A substantial reversal of integration due to increased protectionism both in trade and immigration.
Although the first scenario is the most likely of the two, we examine what both scenarios might mean for real estate in this CBRE ViewPoint.