An interesting phenomenon is taking place in London: the priciest tiers of its housing market are increasingly being driven by overseas investment, primarily from the Far East. The most interesting - and perhaps most concerning - aspect of these investments is that at least 37% those who buy property in the most expensive neighborhoods of central London do not intend to use that property as a primary residence. This results in upscale neighborhoods and residential properties that are largely abandoned and contribute almost nothing to the local economy of the city. Parts of Manhattan are experiencing similar behavior, leading us to ask the question "what is happening to our cities as they become more and more globalized and how will this trend affect city economies around the world?"
Read more after the break...