The risk that a government defaults on its debt or changes rules in ways that hit investors; a sovereign downgrade raises financing costs across an entire market.
Related terms
- Store of value
An asset held to preserve wealth over time, a key motive for property in volatile economies.
- Transparency index
A published ranking of how open and reliable a market's data, transactions, and regulation are, such as JLL's Global Real Estate Transparency Index; Gulf marke…
- Vision 2030
Saudi Arabia national transformation programme reshaping its economy and real estate demand.
- Capital controls
Government limits on moving money in or out of a country; Egypt's and Nigeria's FX restrictions have at times trapped rental income and sale proceeds, a core r…
- Country risk
The aggregate political, economic, and legal risk of investing in a particular country.
- Currency risk
The risk that exchange-rate movements erode returns for cross-border investors.
- Delivery risk
The risk that a developer fails to complete or hand over a project on time or to standard.
- Development finance institution (DFI)
A public or quasi-public body financing development, influential in African real estate.