International Real Estate Business Opportunities and Resources

resources

Go global and join the forces of successful real estate professionals who have opened their doors into the world of international real estate! Here you will find tips for locating and working with international clients, etiquette, cross-cultural business guides and international networking opportunities. You will also uncover an assortment of international real estate information sources, including a variety of worldly resources from the REALTOR® organization.

Economics of the International Market

The economics of home sales to international buyers— that is, foreigners who purchase residential properties in the U.S. but are not permanent residents—are somewhat different from those of domestic sales. Non-residents tend to purchase homes for vacation and investment purposes, tend to pay a higher price, and tend to concentrate their sales in specific geographic areas. Based on data from NAR’s Existing-Home Sales database, a total of 5.4 million homes were sold during the 12 months ending in May 2010, with an estimated total value of approximately $900 Billion* Based on survey information the estimate of sales to international clients is approximately $42 Billion, 4.6 percent of the total existing home sales market dollar volume, or 197,000 homes.** Click here to read the rest of this article.

U.S. Housing Market Still Attractive to Foreign Buyers

NAR has just released its 2009 International Home Buying Activity report. While the report shows a further decline in home sales to foreign buyers from the 2008 and 2007 studies, the percentage of decline has narrowed. According to the study, 23% of REALTORS® served international clients in 2008/2009, compared to 26% reported in the 2008 study and 32% reported in 2007. The decline mirrors the overall decline in the existing home sales market, which decreased 39% between September 2005 and January 2009. There is confidence that once the global economic market conditions improve, the rate of home purchases by foreign investors and buyers will increase as well. The reports offers detailed information on sources of in-bound buyers and buyers' location and property type preferences. New with the 2009 study is data on commercial purchases and also information on barriers to successful transactions by foreign buyers of U.S. property. Download the full report.

Governments Ease Foreign Ownership Restrictions to Stimulate Investment

With global markets down, governments worldwide are looking at ways to attract investors resulting in changes in foreign and nonresident ownership laws designed to stimulate in-bound investment. Caribbean nations, China, and Australia have all recently loosened restrictions and the Philippines is discussing it. India and Turkey made significant changes in recent years with the same objective. Emerging markets are most likely to examine their laws as most western markets have had few, if any, restrictions on foreign ownership. Read more in a recent Wall Street Journal article. Information on foreign ownership is available for 30+ countries in the Business Practices section at WorldProperties.com.

New Investor Survey Projects U.S. Recovery by Mid-2010

Foreign real estate investors expect to see a U.S. market recovery by end of 2Q 2010, according to a new survey from the Association of Foreign Investors in Real Estate (AFIRE). Completed in May, this is the first mid-year survey conducted by AFIRE. Respondents projected their investments for the remainder of 2009 will substantially out-strip investments completed year-to-date (YTD). On the debt side, respondents expect to invest three times more than current investment levels YTD; equity investors expect they will place seven times more than current YTD investments. Overall, 75% of the survey respondents had not yet invested in 2009; however, more than two-thirds plan to invest some debt or equity in U.S. real estate before year-end. Survey respondents continue to be optimistic in their investment projections; 31% said they were more optimistic than at the beginning of the year; 16% were more pessimistic; and 53% felt about the same. AFIRE members projected the office sector will lead the recovery, followed by multi-family and industrial sectors. This represents a shift in investor perception from the January Annual Survey in which investors expressed an interest for multi-family over office buildings for their real estate investment dollars.

Latin Branding Pays Off

Casa Latino is the fastest growing real estate brand in the U.S. according to Trend Report 2009, and listed as #7 on the Swanepoel Top 10 Trendsetters in Real Estate for 2008. Over 15.1% (45.5 million) of the total U.S. population is Hispanic and has the largest growth rate. The U.S. Census estimates that by 2020, the Hispanic population will reach 60 million--almost 18% of the U.S. population. These numbers translate in to economic power. Hispanic Americans weld an estimated $1 trillion in buying power, but for years were largely ignored as a consumer group. Although their purchasing power is now well recognized, businesses may find it difficult to attract Hispanic consumers. Enter Casa Latino, whose marketing strategy is all about culture. The company says its not about marketing to Latinos, but rather is a Latino company whose "entire structure, focus, and mission has been designed to effectively service Multicultural and Hispanic home buyer and home sellers." Learn more about Casa Latino's marketing strategy.

CULTURALLY CORRECT

To Gift or Not to Gift

International business often requires an offering or exchange of gifts...but not always, and the appropriate quality of the gift can vary greatly. Having some basic understanding of the business gift guidelines for the country in which your engaged in business can help make your transaction a success. The International Business Center offers some gift giving guidance.

Global Demographics are Shaping Real Estate's Future

Population growth, urbanization, aging, and migration--all factors affecting land use---are examined in Global Demographics 2009: Shaping Real Estate's Future, a new publication from the Urban Land Institute. Population and demographic shifts will continue to place enormous pressure on urban areas. Over the next 40 years, the greatest population increases will occur in China, India and the U.S.; conversely, Europe will experience population declines. Mature but still growing economies (U.S., Canada, U.K., Ireland, Australia, and New Zealand) will offer attractive real estate investment and development prospects once the recession subsides. Many developing nations are emerging consumer markets, with a growing number of middle-income households generating enthusiastic consumer demand--boding well for the real estate industry. A summary of the real estate implications of demographic changes is included with each chapter. Read more highlights.

International Market Activity by State
What do you know about international market activity in your state? If the answer is, 'not much,' then NAR's State-by-State International Activity reports are for you. The free reports present economic and demographic data related to international business activity for all 50 states and Washington, D.C. Topics include population demographics, languages, immigration and naturalization trends, FDI, state exports and imports and more. This resource is one of more than 75 included in the online Global Business Guide, which highlights international business development resources.

Bargain Prices Lure Overseas Investors Back to the Market
Double-digit price declines of the past two years combined with the renewed strength of the dollar against foreign currencies has made buying overseas more affordable for Americans. While financing is still hard to come buy, cash buyers have a world of bargain-priced properties to choose from as developers cut prices to sell excess inventory housing stock. These market conditions are attracting investors back into the market, according to an April 27 Business Week story, not only to exotic locales, but also to traditional U.S. investment destinations such as Florida and the Southwest. Read which markets are most worth considering according to multinational market analysts, or view a slide show of Business Week's best global buys.

Networking Opportunities at Home & Abroad

2009 International Meetings/Conference Schedule

Transnational Referral System (ICREA)

International Real Estate Information Sources

International Real Property Foundation

State International Business Reports

Association of Foreign Investors in Real Estate

Global Real Estate Project

International Real Estate Digest

Finding & Working with International Clients

Toolkit for servicing your multicultural clients, (REALTOR® Magazine Online).

Know the law - protecting foreign customers from exposure to U.S. estate taxes, (Florida REALTOR® Magazine, Apr. 2006).

Real estate now truly global, (Realty Times, Mar. 29, 2006).

How to speak a foreign language, (Texas REALTOR®, July 2005).

Become part of the future, now!, (Global Perspectives in Real Estate, First Quarter 2005).

Attracting global investors, (Commercial Investment Real Estate, July-Aug. 2004).

The International Matrix: A New Perspective of the Real Estate Marketplace, (Global Perspectives in Real Estate, Third Quarter 2004).

Talk among yourselves, (Global Perspectives in Real Estate, Third Quarter 2004.

Small world, isn't it, (Global Perspectives in Real Estate, Second Quarter 2004.

The power of many, (Global Perspectives in Real Estate, Second Quarter 2004.

Cast a wider net, (REALTOR® Magazine, Oct. 2003).

The waiting game: cross border sales pause as economic and political events play out, (REALTOR® Magazine, June 2003).

The power of one: bridge builder, (REALTOR® Magazine, Apr. 2003).

Whatley report: think globally, (REALTOR® Magazine, Apr. 2003).

Global Resources from the REALTOR® Organization

The Certified International Property Specialist Network (CIPS) is the specialty membership group for international practitioners of the NATIONAL ASSOCIATION OF REALTORS®. The CIPS Network is comprised of 1,500 real estate professionals who deal in all types of real estate, but specialize in the "international" market.

The International Consortium of Real Estate Associations (ICREA) is a global alliance whose members are leading national real estate organizations in the world's major markets.

Over 3 million properties around the world are available online at www.worldproperties.com. This valuable website also provides access to real estate professionals from 21 countries around the globe.

NAR's REALTOR® University is an internet-based education delivery system where real estate professionals can takes courses online, click this link to browse the catalog for details on how to take the Essentials of International Real Estate Online Training Course (CIPS) and obtain the Transnational Referral Certification (TRC)

International Real Estate Report

Global Perspectives in Real Estate

Diversity Initiatives

2004 NATIONAL ASSOCIATION OF REALTORS® International Real Estate Profile

International Real Estate Activity and REALTOR® Income

International Etiquette

Don't Gross Out the World

There can be more challenges to dining abroad than just reading the menu. REALTORS® doing business outside the U.S. should brush up on their international dinning etiquette before they leave. Test your current knowledge on 11 countries with this fun quiz on how not to gross out the world when you eat.

Global etiquette, (www.international.monster.com).

Business culture guide, (www.executiveplanet.com).

International business etiquette and manners, (www.cyborlink.com).

Doing business worldwide, (www.worldbiz.com).

Capturing ethic markets in the U.S., (Global Perspectives in Real Estate, First Quarter 2006).

Venturing abroad, so you want to open an office in another country ..., (Global Perspectives in Real Estate, First Quarter 2004).

eBooks & Other Resources

eBooks.realtor.org

The following ebooks and digital audiobooks are available to NAR members:

Books, Videos, Research Reports & More

The resources below are available for loan through Information Central. Up to three books, tapes, CDs and/or DVDs can be borrowed for 30 days from the Library for a nominal fee of $10. Call Information Central at 800.874.6500 for assistance.

International real estate finance yearbook, (Adrian Hornbrook, 2005). HD 7287 P93

International residential property review, (Knight Frank, 2005). HG 4538 K74

International real estate: a comparative approach, (Dearborn Real Estate Education, 2004). HG 4538 L46

International real estate: an institutional approach, (Blackwell Publishing, 2004). HG 4538 Se1

How to win over international clients one move at a time, (CRS Residential Specialist, July 2003, p. 24-25).

Internet resources and services for international real estate, (Oryx Press, 2001). HF 5548.5 C34

Investing in international real estate, (Westport, CT: Quorum Books, 2001). HG 4538 H58i

Making a home for international clients. Think you have to live in a big city, on the boarders or coasts to handle international clients? Think again. This is the market that comes to you, (Real Estate Business, May 2001, p. 32-36).

Border crossings. Patience and cultural sensitivity are key to working in international markets successfully, (Shopping Center World, Feb. 2001, p. 70, 72).

Selling homes in the melting pot, (College Station, TX: Real Estate Center, 2000). VT061

Opening doors: selling to multicultural real estate clients, (Winchester, VA: Oakhill Press, 1999). HF 5438 L51o

Bienes races: an English-Spanish real estate directory, (Chicago, IL: Real Estate Education Company, 1996). HD 1375 B47

Do's and taboos of hosting international visitors, (John Wiley & Sons, 1990). HF 5389 Ax7