A World Of Opportunity - February 4, 2006. Times Property (Times of India)

With so many opportunities available in the global market, brokers need to be aware of international practices in order to be able to compete

This week, members of the National Association of Realtors (NAR) from USA and Canada are in India for a "study tour cum trade mission" and also for the Indian Institute of Real Estate (IIRE) seminar, 'Expand your Market' and Transnational Referral Certification (TRC). The seminar, which is being held in Mumbai today, will highlight various topics on what India has to offer in terms of real estate and how it can be promoted on a global level.

The environment in which brokers operate today is a very different one, compared even to just a decade or two ago. Developments in telecommunications, computer and information technology all bring the world markets closer together, facilitating the flow of information and ideas, communication, and commerce around the globe. Business alliances also contribute to market globalisation.

Under such circumstances, real estate professionals around the world are looking for ways to better serve their clients and customers who wish to buy property outside their country and/or who are seeking to sell a property with worldwide appeal. Until now, obstacles to providing these services included a lack of readily available information on Foreign markets, the absence of international real estate norms and standards, uncertainties associated with Foreign market practices/legal systems, and the absence of an efficient international referral network that assures payment of earned fees and commissions. In today's market, real estate is complex enough when the transaction is local. Adding an international element to the deal makes it even more so

The opportunities for brokers, however, are tremendous. In January, the Indian government launched an overseas citizenship program for Indians who emigrated after 1950 -- impacting 25 million people of Indian origin, many who left in search of jobs and education, and subsequently became citizens of their adopted countries. The program is designed to encourage their investment in India , which will be easier as citizens. It grants emigrants lifelong multiple entry visas, and also allows them to purchase and own land, homes, and buildings in India . Therein lies the opportunity for Indian and U.S. realtors.

There are one million ethnic Indians living in the U.S. (the third largest population outside India , and the third largest U.S. immigrant group). The amount of cash sent back to India from the U.S. in 2005 was estimated at $20 billion, up from $13 billion in 2001. With the new program, this is likely to increase in 2006. Realtors working in areas with ethnic Indian communities in U.S. will want to establish ties with members of the India Institute of Real Estate (NAR's alliance in India ), and organise referral agreements to assist Indians in the United States , looking to invest in their native land.

If you, as a broker, wish to expand your own business and serve your clients better, there are a few things that need to be kept in mind. Along with evaluating your own interest in and commitment to developing an international real estate practice, you should assess your local market's potential for international real estate business.

Beginning the analysis of your market with an "international eye" and by studying what Foreign investment has already occurred can provide a good perspective of current opportunities. Consider your community in terms international connections. Many cities, states, universities, and other organizations have international festivals and events, host overseas visitors, and set up exchanges or "sister city" connections. Such programs will give you some insights as to the level of international activity in your area, and can provide an avenue for building a network.

If international specialists in your market have identified a need, and the demand is significant, you may want to follow the trend. If demand is already being met, you may want to adopt a specialty that is different from existing competition.

Where can you find the data needed to assess the market? Many organisations measure, monitor, analyze and publish data. Searching the Internet for a specific country will yield a wealth of useful information.  

Building international linkages can also make a huge difference. In 2001, a group of 23 real estate associations, including the `India Institute Of Real Estate', representing the world's major real estate markets, created the International Consortium of Real Estate Associations (ICREA). The Consortium shares standards of practice and provides an enforceable referral fee system.  

ICREA's network of brokers - more than one million - are affiliated with leading national organisations and adhere to a code of ethics that commits them to professionalism and service to their customers and clients. In India , if you are an IIRE member, you are automatically a member of ICREA.

BULLETS POINTS

  There is tremendous room for growth in international markets for brokers who can navigate their way through

  Knowledge of international markets and business practices is essential

  For starters, look at your local market with an 'international eye' and study the Foreign investment that has already occurred