People in the Know: From the General to the Particular


- Founded nearly 60 years ago, FIABCI, or the International Real Estate Federation, is an organization with established traditions and procedures. Have you succeeded in introducing something new in its operations?

Each chairman introduces something new. In my opinion, the key changes affected FIABCI’s strategic planning committee. At the initiative of committee members, we have come up with a document – 2007 Strategic Plan –adopted virtually unanimously by all FIABCI members across the globe. The plan formulates four key goals of the federation, including popularization of FIABCI membership, financial accountability and profitability, tolerance towards cultural differences and further development of legal initiatives in real estate. FIABI’s key goal, i.e. promoting international transactions involving real estate, fully corresponds with our objective of becoming the world’s leading umbrella organization in real estate. Our “Beyond Excellence” philosophy generates the key principles of the federation, which are membership, communication, technologies, professional growth, services for our members, public policies and image.

-On which aspects in development of global real estate market do you place special emphasis in 2007?

FIABCI is set to promote and support projects aimed at adaptation of new members, training and professional growth of new leaders, as well as programs initiated in the framework of 2007 Strategic Plan. Our HQ in Paris can play a more active role in preparation of key events organized by the federation including regional and international conferences. National chapters could step up activity in their own countries by accepting more members. This policy has already brought good results, as the FIABCI membership grew 20% from 2006.

-What benefits do FIABCI members enjoy?

I think that the FIABCI membership gives its holders really great opportunities. The members of our federation use FIABCI to establish contacts with partners across the globe via the Internet and obtain data on real properties throughout the world. FIABCI is a global network enabling its members to establish partnerships and improve their own performance.

-What are your key responsibilities? How do you manage to run a global organization uniting real estate professionals in more than 60 countries?

I cannot say that I carry out global changes; I merely maintain our operations at a certain level, and I hope, at a high level. By the time I was elected FIABCI president, the federation had existed for many decades. I believe that FIABCI has two specific features.

To begin with, like Russia, FIABCI constitutes a “federation of associations”. This is a unique structure, as it helps to bring together national associations, which, on their part, unite real estate professionals in each given country. Each chapter adheres to its own rules and procedures, adjusted to a variety of factors, such as the market situation, number of market participants, expertise, country-specific factors, etc.

At the same time, by joining FIABCI, national chapters accept the principles of the association. They work towards improving their members’ professional standards, promote cross border transactions, etc.

Secondly, FIABCI is a gigantic business club that comprises individual real estate market participants and companies. The FIABCI acronym is perceived by professionals as a password known to those who need to know it. Being a member of the federation is a sort of an indicator of professionalism of a company or an individual.

-What is the organizational structure of FIABCI?

The federation comprises a number of committees whose members – institutional as well as individual – pursue a variety of tasks in real estate. FIABCI has regional and administrative units in charge of memberships, new members, conferences, prize nominations and finance, international cooperation, as well as professional committees. Members of some of the committees are elected, other committees are appointed.

-What are the specifics of operation of FIABCI’s chapters in transition economies, such as Russia?

The transition economies the real estate market growth depends on the development of private ownership. Quite often such countries lack reliable legal base, governing transactions in land, mortgage lending, etc. National markets have their specifics. For example, in developed economies governments and municipalities are not willing to be involved. But for example in France real estate companies are required to obtain a government certificate, which is not the case in Spain.

-Who governs the global market of real estate?

That industry is self-regulating. In 2004, I attended FIABCI’s conference in St. Petersburg and I would say that Russian real estate companies and developers have achieved great results. The event was organized in full compliance with international standards. On the other hand, Russian realtors and developers need to work harder on laws governing the market of real estate. Their professional growth is impossible without it.

-Which nations are the most rapidly growing real estate markets?

Those are China, of course, and some of the African nations. Eastern European countries are also worthy of mentioning, as well as Turkey where in the course of 18 months alone the market of real estate has doubled. The key prerequisites for development of real estate in Russia, Eastern Europe and Latin America are title insurance, licensing, effective protection of private ownership. Once those requirements are met investment will flow into those markets, and the situation will stabilize in the course of several years. And of course, normal market growth is impossible without the development of tax legislation.