The Impact of Gated and Guarded Development Concept from the Social Aspect: Non Resident Perspective☆
Abstract Gated and Guarded Development Concept (GACOS) offers competent security and maintenance besides ensuring an exclusive and private lifestyle. Despite the rise in the number of GACOS developments, they are mired in various issues and controversies specifically negative social connotations. These developments are perceived to denote ‘social apartheid’ within a residential neighbourhood. Hence, an empirical study has been conducted to investigate the social effects arising from GACOS development with the Ipoh Conurbation area as the case study. Findings from this empirical study indicated that there exists a social gap between residents within a GACOS development and those within the surrounding areas.
I address the construction of hurdle rates for 66 countries that adequately compensate investors for the real estate specific market risks involved when investing, operating and exiting a foreign market. To estimate the market-based framework, I run random effect panel regressions for a period of six years from 2004-2009 of IPD direct property market returns and an integral and newly developed composite index that takes into account all real estate market and investment specific conditions. The regression results provide direct evidence that an increased perception of risk and instability in the countries' socio-economic conditions and institutional frameworks significantly imply higher investors' return expectations. Finally, the results provide international investors with an absolute hurdle rate that prices risks and opportunities of national real estate markets and guides investors in selecting a core, value-add, or opportunistic investment strategy.