Why CRE professionals should start thinking internationally
You may think people who live and work outside of the United States tend to keep their property purchases in their home countries, but real estate market trends show that isn’t necessarily the case. With more restrictions on foreign buyers like increased property taxes and limits on international investment, these buyers are becoming more interested in U.S. properties. That’s why ListGlobally, a network of residential property portals, is expanding its market share in North America.
While ListGlobally focuses on promoting residential properties across listing sites, their expansion to the U.S. has implications for CRE brokerages as well: International buyers are coming for American properties, and brokerages should begin targeting those buyers now.
What is ListGlobally, and why are they expanding?
ListGlobally is the world’s largest online source available for residential properties, syndicating to the best-ranking portals in countries from China, to France, to India. After gaining popularity primarily in western Europe, it will now expand to property owners in the U.S., allowing them to syndicate their sites to potential buyers across the globe.
Byron Burley, president of ListGlobally North America and Oceania, said due to increased foreign buyer property taxes, the U.S. is becoming more attractive to international buyers, prompting ListGlobally’s expansion. Foreign buyers are particularly interested in states like California, New York and Florida.
This is good news for U.S. brokers. According to a 2018 ListGlobally study, 86 percent of international buyers spend more money on homes in the U.S. than people who live here. This indicates foreign buyers may be willing to invest more in commercial properties as well.
What does global syndication mean for the future of CRE?
Even though ListGlobally focuses on residential real estate, this expansion also has implications for the CRE industry. With an uptick in international buyers interested in North American properties, brokers and investors alike should start to think about how to reach those buyers now.
More wealthy international buyers may also be interested in purchasing office spaces, restaurants or hotels, so brokerages and investors should make it a priority to research what these buyers care about most in these markets. Brokers should not only consider how to update their proposals and other materials with foreign buyers in mind, but how to syndicate their properties more widely.
Buildout’s syndication feature could be a start. It allows brokers to syndicate across national and local sites like theBrokerList, Brevitas, 42Floors, RealConnex, Canada-based Spacelist and more. To learn more about how Buildout’s property syndication feature could benefit your forward-thinking brokerage, contact us.