How deglobalisation and protectionism are reshaping international property

Globalisation is on the retreat and protectionism is rising, with profound implications for the future of international real estate.

If you’re a property professional, you’re likely already seeing the signs: changing investment flows, evolving buyer profiles, and a shifting regulatory landscape.

What else lies ahead, and how can you prepare? In this article, we explore the growing trend of deglobalisation, what it means for the international property market, and how you can adjust to meet the demands of an increasingly fragmented world.

A fracturing global order

Over the past two decades, many countries have pulled back from liberal trade and immigration policies. Driven by economic disillusionment, political populism, and social tensions, the trend toward protectionism has gained momentum.

Brexit was a key event in the UK, coinciding with a rise in political support for nationalist parties across Europe. Meanwhile, countries such as the US, China, India and Japan have all sought to reshore some forms of manufacturing and incentivise domestic investment, particularly in the wake of the COVID pandemic.

Donald Trump’s second presidency has accelerated the trend further as he continues to pursue his ‘America First’ agenda. Tariffs and trade wars, stricter immigration policies, withdrawing from international organisations and treaties – all these policies could push the world towards deeper deglobalisation, with far-reaching consequences for the international property market.

What deglobalisation means for international real estate

Shifting supply chains and rising build costs

As countries prioritise reshoring or nearshoring their supply chains to reduce dependency on geopolitical rivals, construction inputs are likely to become more expensive. However, the scale of impact will vary – markets with strong domestic manufacturing or regional trade agreements may be less affected.

This could increase costs for new developments, lead to longer build times (especially in regions reliant on foreign materials), and squeeze margins for developers – all of which will potentially drive upward price pressures, reducing affordability for both buyers and renters.

If you’re advising clients or involved in transactions, rising construction costs and delays could affect everything from new-build pricing to completion timelines. Buyers may face higher prices and reduced choice, while developers might scale back or pause projects – especially in areas dependent on imported materials.

For agents, that means preparing clients for price fluctuations and longer waits. For lawyers, expect more complexity around contract terms, delays, and possibly renegotiations if projects hit supply chain snags.

Staying close to developers and understanding how these trends affect local pipelines will help you give better, more realistic advice.

Changing immigration patterns and new buyer demographics

Stricter immigration policies are likely to reshape international buyer pools, although the pace and extent of change will depend heavily on local politics, economic needs, and bilateral agreements.

One general trend we may see is a decline in low- and middle-income immigration as countries tighten rules. However, it’s likely that high-net-worth and skilled migrants will still find favourable paths, particularly through investment or employment-based visas.

You should also consider the impact of cultural and geopolitical alignment. Countries may ease migration for culturally similar or strategically important partners – such as Brazil and Portugal, the US and Canada, or Commonwealth ties – while tightening access for others. This could influence demand flows in specific submarkets and change the profile of international buyers.

For you, this could mean you see sustained or even increased demand for luxury housing, while overseas demand for lower-value properties decreases from some countries.

Regions with cultural or bilateral ties could benefit from more favourable migration flows. We could see more Brazilian interest in Portuguese property, for instance. Conversely, countries adopting more aggressive stances may see drops in demand from traditional overseas investors.

Foreign ownership and investment controls

One trend we’ve seen already is that governments are becoming increasingly cautious about foreign capital in their property markets.

Golden Visa programmes have been scrapped in countries like Portugal, Spain and Ireland, under pressure from housing affordability campaigns and political opposition. Several jurisdictions – including Canada and New Zealand – have introduced foreign buyer taxes or outright bans to protect domestic supply.

Increased protectionism could see similar changes in other countries. Greece has already tightened its rules, and Cyprus has introduced stricter vetting processes.

There is also growing discussion around capital controls – such as taxing rental income, capital gains repatriation, or limiting ownership for non-residents – which could reshape investment dynamics. At present, these measures are more common in emerging or politically volatile markets, but they are beginning to feature in policy debates in developed economies too.

In some countries, national security concerns have triggered scrutiny of foreign ownership near sensitive infrastructure – a trend to watch in the US, Australia, and parts of Europe.

Keeping up with regulatory changes is vital so that you can support your clients and get ahead of any changes that might impact demand from overseas buyers. Being aware and agile will also help you seize opportunities – such as a rush in investment before a visa deadline expires – and be ready to redirect your efforts if new rules or buyer patterns change the flow of international investment.

Navigating complex regulatory mismatches

In addition to new policies impacting foreign ownership and investment, deglobalisation could lead to more fragmented regulation between jurisdictions, complicating cross-border transactions.

This means you’ll need to be prepared to adapt to changes and deal with issues such as conflicting regulations, additional paperwork, or unexpected legal requirements. Regulatory differences are already a common pitfall for lawyers and other property professionals, and their impact on transactions is likely to grow.

However, the international property sector is evolving. New technologies are already helping to streamline complex processes, such as compliance procedures, and we could see innovation accelerate in response to a fragmenting global landscape.

Furthermore, national differences in property and investment law are likely to increase the need for local partnerships and on-the-ground intelligence. You’ll need to understand where your expertise ends and local support begins, fostering strong working relationships with specialists.

How you can prepare for the impact of deglobalisation on international real estate

Stay on top of policy changes

Immigration rules, trade agreements, and foreign ownership laws can change quickly in a protectionist climate. By tracking these developments in your target markets, you can give clients timely, accurate guidance and avoid nasty surprises in cross-border transactions.

Be ready to adapt to shifting buyer flows

Changes in migration policy and geopolitical relationships can alter who’s buying and from where. Keep a close watch on buyer demographics so you can adjust your marketing and client outreach to match the most active and promising segments.

Understand the ‘why’ behind purchases

For many international buyers, mobility, lifestyle security, and cultural connections are increasingly important when deciding where to buy. By uncovering these motivations early, you can match clients with properties that truly fit their needs and strengthen your value as an advisor.

Build strong local networks

In a more complex, fragmented market, having trusted local partners – from legal specialists to tax advisors – can be the difference between a smooth transaction and a costly delay. Cultivate relationships that give you reliable on-the-ground insight.

Tighten your compliance processes

Expect more complex compliance requirements in cross-border deals, especially around anti-money laundering (AML) and source-of-funds checks. Investing time in robust compliance procedures now will save you headaches later and build trust with both clients and regulators.

Use technology to work smarter

Redpin can simplify the complex parts of international transactions, from secure cross-border payments to connecting you with vetted partners in other markets. This frees up more of your time to focus on client relationships and deal-making, while reducing the risk of delays or errors.

Looking ahead

Deglobalisation and protectionism are likely to continue shaping the way international property is bought, sold, and regulated. Of course the speed and scale of these changes will vary from market to market, but the overall direction is clear.

For estate agents and property lawyers, staying agile in the face of uncertainty is increasingly important.

Redpin helps you navigate this shifting landscape by making cross-border transactions simpler, faster, and more secure. Speak to an expert at Redpin to see how our services can help you prepare for the changes and challenges ahead.