The association between real estate funds and urban risk is complex; financial uncertainty of real estate development increases urban vulnerability and negatively affects the sustainability of cities. However, the relation is not reciprocal, since the impact that urban risk, and the reliability of national economies have on real estate development is relatively low. The success of national economies depends on the specific conditions of a country's cities, and the success of global supranational risk is closer to urban subnational risk. The financial risk of real estate development has increased because of financialisation. As the metropolitan concentration is high and selective, transnational real estate funds, along with the geographical mobility of capital, propel the growth of real estate bubbles and crisis, making a big impact on sustainability at many levels - urban, national and even global-. Financialisation is not just a real estate development issue; rather it is an "urban financialisation" (like the subprime crisis), which includes social housing, intensifying territorial disparities.
Keywords:
Real estate funds, urban risk, urban sustainability
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