The Summary of the Panel 15/B – Expanding Horizons: The Future of Cross-Border Real Estate Transactions

The panel titled Expanding Horizons: The Future of Cross-Border Real Estate Transactions at the MLS International Forum brought together influential figures from the real estate sector to discuss the importance of international collaboration, challenges in global transactions, and the future of real estate as it becomes increasingly globalized.

Speakers included Alireza Memar (Inaugural President of the Board of Advisory of International MLS Forum), Jasem Alhosani (Operations Lead Advanced Real Estate Services, UAE), Meghan Kelley (SVP of International Operations at eXp Realty), Gizo Ujarmeli (President Elect at Central Wisconsin MLS), and Janet Choynowski (CEO at Immobel Group).

The Importance of International Collaboration in Real Estate

The panel opened with a discussion on how international collaboration is reshaping the real estate landscape. Alireza Memar emphasized the economic impact of cross-border real estate transactions, citing the UAE as an example, where 60% of residents are non-nationals, underscoring the importance of collaboration to support international investments and residency.

Key Takeaways:

• Economic Significance: International collaboration drives economic growth and is an incentive for new initiatives like Multiple Listing Services (MLS) that facilitate cross-border transactions.
• Standardization: Memar pointed out that global real estate transactions need standardized systems to ensure regulatory compliance and smooth operations.

Challenges and Solutions in Global Real Estate Transactions

The panelists addressed the various challenges faced by real estate professionals in cross-border transactions, especially in managing data and ensuring legal compliance. Meghan Kelley discussed the need for centralized and localized CRM tools to handle the complex nature of international transactions.

Key Challenges:

• Data Management: The fragmentation of data across countries makes it difficult to track transactions. Kelley highlighted the importance of both centralized tools for consistency and localized systems tailored to specific regions.
• Legal Discrepancies: Different countries have unique legal requirements and processes for real estate transactions, making cross-border deals complex. For example, payment and closing standards vary significantly between markets.
• Data Quality: Ensuring clean and accurate data is crucial for effective collaboration between brokers and agents in different countries.

Solutions:

• Standardizing MLS Systems: Global real estate companies like eXp Realty have been working to join regional MLSs (such as the Gulf region MLS) to ensure consistent practices across markets.
• AI Integration: Gizo Ujarmeli added that the future of cross-border transactions would benefit greatly from AI-driven tools that connect global real estate data, enabling smoother operations across countries.

The Future of Global Real Estate Transactions

The panelists shared their visions for the future of global real estate transactions, focusing on technological advancements that will enable greater integration. Jasem Alhosani highlighted how AI and blockchain technologies could lead to seamless, real-time global connectivity.

Key Insights:

• Global Integration: With technologies like AI advancing rapidly, the possibility of a truly connected global real estate platform is on the horizon. The panelists predicted that agents will eventually be able to log into a system and access global property data effortlessly.
• Universal Real Estate Language: Janet Choynowski emphasized the need for a universal standard for real estate data, similar to how English functions as the universal business language. Organizations like RISO are working toward developing global real estate standards that will make cross-border transactions more efficient and transparent.

Janet Choynowski’s Journey and Global Real Estate Platform

Janet Choynowski, CEO of Immobel Group, shared her experience in building a global real estate platform. She discussed how her early career as a real estate broker in Poland, during the post-communist era, gave her valuable insights into cross-border investments. Inspired by Realtor.com, she envisioned a platform where users could view real estate properties worldwide in any language.

Key Highlights:

• Platform Development: Choynowski developed a mobile platform that now supports 19 languages and serves over 300,000 users globally.
• Cross-Border Investments: Her work aims to make real estate data accessible across borders, with localized content for diverse populations. In areas like Los Angeles County, where many residents consume media in a language other than English, this localization is crucial for effective real estate marketing.

Challenges in Global Real Estate Transactions

The panel also discussed the fragmentation of information in global real estate transactions. Jasem Alhosani compared the situation to industries like travel, where platforms such as Booking.com provide centralized information, while real estate lacks a similarly comprehensive system.

Key Challenges:

• Multilanguage Support: Real estate platforms must offer support in multiple languages to cater to international buyers. For example, an Italian buyer in Florida would benefit from property listings available in Italian to facilitate communication with family members back home.
• Cultural Differences: Different countries have distinct ways of conducting real estate transactions. Gizo Ujarmeli noted that in South America and Brazil, WhatsApp is a primary communication tool, and agents must adapt to these practices to be effective.

Technology Integration and Personal Interaction

While technology is rapidly transforming the real estate industry, personal interaction still plays a key role in cross-border transactions. Meghan Kelley highlighted the need for referral platforms that help agents manage legal and tax requirements across borders while allowing them to meet clients face-to-face when necessary.

Technology vs. Personal Touch:

• Automated Platforms: Tools like Sotheby’s International‘s referral platform, which operates in 19 languages, are designed to support agents in managing international deals.
• In-Person Meetings: Despite the advancements in technology, personal meetings remain critical for establishing trust with clients and finalizing transactions.

Global Real Estate Practices and Education for Agents

The panel stressed the importance of educating real estate agents on cross-border transactions. Janet Choynowski emphasized the need for marketing tools that help agents promote properties internationally and understand the cultural triggers that drive investment decisions in different countries.

Key Strategies:

• Agent Education: Training sessions for agents, particularly in Latin America, ensure they understand the nuances of selling properties to international buyers. Collaboration with associations like SILA, representing 19 countries in the region, plays a crucial role in this.
• Marketing and Referral Tools: Platforms that allow agents to easily share listings via WhatsApp, email, and social networks are vital for expanding their reach and building networks with local agents.

Future of Global Real Estate and Standardization

As real estate becomes more global, the role of collaboration and standardization will be critical. Alireza Memar and Jasem Alhosani emphasized the importance of creating standardized systems that simplify cross-border transactions and make real estate more accessible worldwide.

Key Points:

• Global Connectivity: Real estate professionals are increasingly becoming global agents as technology enables them to operate across borders with ease.
• Cultural Adaptation: Agents need to adapt to the cultural practices of their clients, especially when working with buyers from different countries. Understanding local investment triggers, such as political instability or currency diversification, is key to delivering value.