BUILDING AN INTERNATIONAL BUSSINESS
Growing Your Business Globally
Opportunities with FIABCI World Councils
Russian National Real Estate Congress
May 17, 2012 Moscow, Russia
Kirkor Ajderhanyan
President World Council of Brokers FIABCI
President International Relations Committee FNAIM
General Coordinator Global Real Estate Think Tank
Broker/Owner Agence 107 Promenade
107, Promenade des Anglais 06000 Nice France
kirkor@107promenade.com 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
relationships
3
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
FIABCI World Councils
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
Professional Division
WORLD COUNCILS
MANAGERS
BROKERS
DEVELOPERS / INVESTORS
EXPERTS
Michael von Hauff,
President
Kirkor Ajderhanyan,
President
João Crestana,
President
Terry Dunkin,
President
OFFICE BUILDINGS
RESIDENTIAL
BUILDERS
ARCHITECTS
CONDOS
OFFICE
FUNDS
VALUERS
RENTAL BUILDINGS
INDUSTRIAL
FINANCIAL INSTITUTIONS
LAWYERS
RETAIL
RETAIL
PROMOTERS
ENGINEERS
INDUSTRIAL
LEISURE
SURVEYORS
ASSETS
LAND
CONSULTANTS
FARM
TITLE COMPANIES
FIABCI WORLD COUNCIL OF BROKERS
5
EDUCATORS
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 BROKERS
6
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 BROKERS
7
WCB Divisions
WORLD COUNCIL OF BROKERS
DIVISIONS
SERVICES
SPECIALTIES
Commercial
Residential
New Services
OFFICE BUILDINGS
PRIMARY HOUSING
PROXIO
INDUSTRIAL
SECONDARY HOUSING
SOCIAL MEDIA
New Markets
BRANDING
SPONSORSHIPS
EVENTS
GLOBE TROTTER
NETWORK
SYNDICATION
RETAIL
Education Training
& Technology
LEISURE
LAND
PLATFORM
MESSAGING
FIREC
FIABCI WORLD COUNCIL OF BROKERS
Marketing
8
INVESTMENT INFO.
Global
Development &
Promotion
CREATION OF WCB
STRATEGIC PLANNING
GROUP
Foundation of Success: Volunteers!
Join our team and
be part of our success!
If you have an idea—step up and make it happen.
FIABCI WORLD COUNCIL OF BROKERS
9
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 2012
Challenges 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 France
Paris 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
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 BUSSINESS
Growing Your Business Globally
Opportunities with FIABCI World Councils
Russian National Real Estate Congress
May 17, 2012 Moscow, Russia
Merci Beaucoup !
Kirkor Ajderhanyan
President World Council of Brokers FIABCI
President International Relations Committee FNAIM
General Coordinator Global Real Estate Think Tank
Broker/Owner Agence 107 Promenade
107, Promenade des Anglais 06000 Nice France
kirkor@107promenade.com www.107promenade.com