The business think-tank, the New Zealand Initiative, is blaming xenophobia for the opposition to its calls to open the gates for foreign investment, Radio New Zealand reports.
In a report, the conservative think-tank argued overseas buyers should be treated the same as investors in New Zealand.
It said current rules were too restrictive and drove away investors who could create jobs and boost the economy.
Report co-author Bryce Wilkinson said the Overseas Investment Act should be amended to recognise that the gain made by a New Zealand person selling his or her asset was a national benefit.
The report is likely to fuel debate in election year with parties, notably New Zealand First, calling for more, not fewer, restrictions on what foreign investors can buy.
New Zealand First leader Winston Peters said the report was one of the flimsiest he had ever read.
He said New Zealand had a growing gap between the rich and poor and a ballooning debt and he put much of that down to the lowering of barriers.