BUILDING AN INTERNATIONAL BUSSINESSGrowing Your Business Globally
Opportunities with FIABCI World CouncilsRussian National Real Estate Congress
May 17, 2012 Moscow, RussiaKirkor Ajderhanyan
President World Council of Brokers FIABCIPresident International Relations Committee
FNAIMGeneral Coordinator Global Real Estate
Think TankBroker/Owner Agence 107 Promenade
107, Promenade des Anglais 06000 Nice France
[email protected] www.107promenade.com
Business is Changing—You must have Vision and Perspective
Implement a business plan Define target audience and marketing strategies Vision must reflect global trends and market realities Niche market expertise – makes you strong globally Be a “geo-strategist”: Pursue new markets with a global strategy
based on understanding of world events Internet and social media play key role in networking
The chess (strategy) rules stay the same; only players change
2
Referrals: The way forward
Increase revenue from referrals As business becomes more global → revenue
from referrals will increase as % of total revenue Grow referral business by building brand
loyalty Offer “one-stop” shopping client services
Financing Legal Document services Etc.
Develop strong interpersonal relationships3
Interpersonal relationships
Real estate remains a people business—local or global
Personal relationship opens doors—surround yourself with the best people to get to the best doors
Participate in industry events around the world Learn about other markets Meet brokers in those markets Build a global network to support referral business
Be a broker of relationships!4
MANAGERS Michael von Hauff,
President
BROKERSKirkor Ajderhanyan,
President
DEVELOPERS / INVESTORSJoão Crestana,
President
EXPERTSTerry Dunkin,
President
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FIABCI WORLD COUNCIL OF BROKERS5
2010-2011 FIABCI World Councils: Created under FIABCI World President Enrico Campagnoli
2011-2012 FIABCI World Councils: Election of Management Team; Launching of Action Plan under FIABCI World President Alexander Romanenko
2012-2013 FIABCI World Councils: Active involvement in the global real estate industry under FIABCI World President Judy Shenefield
World Council of Brokers Vision
To be the premier, most effective, global business network for brokers
To be multidisciplinary, multi-sectorial and multilingual
To focus our activities around FIABCI’s core competencies
To achieve the goals set for all the World Councils
FIABCI WORLD COUNCIL OF BROKERS6
Philosophy to Achieve the Vision Build a new “Golden
Bridge” between the continents for the good of the industry.
We will achieve this through the exchange of industry knowhow.
The human element and shared universal high values and standards will be “construction guide.”
FIABCI WORLD COUNCIL OF BROKERS7
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Foundation of Success: Volunteers!
Join our team and be part of our success!
If you have an idea—step up and make it happen.
French Market Opportunities Home prices increased, on average, 85% between 2000
and 2007 before falling back during the crisis Largest increases were in Paris and southern France Figures not adjusted for inflation (est. 15%)
Between 2007 and 2011 home prices fell 3.2% Strong sales and price growth in 2011 2011 was a record year for home sales activity
Total sales exceeding 850,000 (highest level since 2006) Home prices rose an average of 6.1% due to:
Historically low interest rates Bounce back from three previous lackluster years
Source: FNAIM
Housing Outlook for 2012Challenges for French residents to buy a home
Expected further market correction Tax changes Rising interest rates; larger deposit needed for good rates
In spite of this…France is a “crisis resistant market” – especially Paris, Nice / French Riviera
Excellent Investor Opportunities Underlying demand remains Substantial housing shortage; high desire for home ownership Low household debt Capital gains tax changes will mean fewer properties on the market,
putting pressure on prices
Foreign Investment in FranceParis Snapshot
Foreign investors looking for €1 to €5 million price property; attracted by prices that are 20-30% lower than Central London
Paris has overtaken London to become the #1 city in Europe for property investment (CBRE, 3/30/12)
Investment jumped from €3.6 billion in the first half of 2011 to €7.9 billion in the second half
Office sector drove investment surge British, Italian and German buyers most
active in luxury market; increased interest from Russian, Middle East and Asian buyers (Knight Frank)
Foreign Investment in France
Nice / French Rivera Snapshot
High demand from large national and international buyers
Prices stable since 2008; buyers understand true value of property
Prices remain reasonable; pricing is unique for each (no average sq. meter price)
Very high re-sale potential Attractive lifestyle Sales volume increased 33% from
2010 to 2011 in Nice seafront Top buyers include French, Russians,
Scandinavians, British and other from Northern Europe and also Middle East/Persian Gulf
Doing Business in France
Highly transparent market Consumers are well protected More demand than inventory Referrals on the sale of properties
average 40% – 50% of the commission paid Average commissions run between 5% and
8% depending on a number of variables Fees are negotiable Professional network of agents through FNAIM
Targeting Russian Investors
Russians buyers are looking for reliable, safe place to put their money >>> Real Estate!
Moscow is expensive; more affordable to invest outside Russia
Russians interested in high quality real estate in London, Paris, Cote d’Azur, Toscana and New York
20% buy in foreign resort areas for holiday trips with families; 20% looking for a retirement home; 25% for investment
Source: Analytical Center IRN.RU
Targeting Russian Investors Typical Russian investor abroad is a businessman –
owner of one or several enterprises Owns an apartment in Moscow and dacha in the suburbs Looking to buy abroad for personal use Preferred destinations:
If speculative – developing markets If long-term investment – developed markets Most Russians buy in markets they have travelled
to, including Cyprus, Bulgaria, Montenegro, Spain and France
Looking for warm, beachfront locations High-priced preferred locations are London,
Switzerland and French Riviera
Source: Moscow Times, Real Estate Quarterly – September 2011
BUILDING AN INTERNATIONAL BUSSINESSGrowing Your Business Globally
Opportunities with FIABCI World CouncilsRussian National Real Estate Congress
May 17, 2012 Moscow, RussiaMerci Beaucoup !
Kirkor AjderhanyanPresident World Council of Brokers FIABCI
President International Relations Committee FNAIM
General Coordinator Global Real Estate Think Tank
Broker/Owner Agence 107 Promenade107, Promenade des Anglais 06000 Nice
www.107promenade.com