Insider information drives major decisions in real estate investment, but unlike the stock market, using it is completely legal. Brokers, developers, and investors routinely act on non-public knowledge—whether it’s upcoming zoning changes, off-market deals, or future infrastructure plans.
A recent poll showed that 47% of respondents believe insider trading should be allowed in real estate, while 53% oppose it. That split reflects how ingrained the practice is in the industry, yet also how controversial it remains.
In commercial real estate, knowing what’s coming before the public does is often the difference between massive returns and a missed opportunity. Investors with access to city planning meetings, rezoning applications, or major corporate relocations can position themselves ahead of market shifts. Developers with inside connections secure prime land before announcements drive up prices.
But where’s the line? Some argue that real estate thrives on asymmetric information and relationships—that’s just part of the game. Others say it gives an unfair advantage to those with access, locking out smaller investors and distorting markets.
Insider trading is illegal in stocks, but in real estate, it’s a fundamental part of dealmaking. Should it stay that way?