Does globalization impact on Residential Markets?

Residential markets are very local and comparing prices is a difficult task, given that different cultures have very different approaches to their home!
Climate, culture, tradition and religion… these are fundamental factors to consider when analyzing “home” as one of the less standardized “products” on the market.
Tourism and wealthy retired families from the north hemisphere have brought, over the last decades, a new population considering either a second home in a foreign country, or even moving permanently to enjoy retirement. Other phenomena include new wealthy people from new economies, such as the Chinese or Arab, buying homes in Western countries.
The system CENTURY 21 around the globe provides a local insight with a unique franchise network to compare the intensity of globalization in the residential market, major flows between countries, and prices.
Through a very simple questionnaire, we surveyed most of the countries where the system CENTURY 21 is present, inquiring about the importance of the foreign buyers’ phenomenon. Price comparisons are also quite ambiguous, so we compared prices in US$, in purchasing power parity with the help of the Big Mac Index, and in number of labor hours (see methodology for further details).
We recognize this piece of research as an approach to the theme without any scientific ambition, since we have knowledge but limited basis for inquiry. Confidencial Imobiliário, an Iberian research company specialized in Real Estate information and indices, is proud to cooperate with CENTURY 21 Spain.

António Gil Machado
Ricardo Guimarães

Confidêncial Imobiliário

Glocalization of the residential market

With consolidated and dominant operations across all continents, the system CENTURY 21 is present in the main capitals of the respective countries. However, its geographical coverage also includes a strong local presence, in peripheral markets and different market segments, in the 75 countries where the brand CENTURY 21 operates, giving real meaning to the expression “local specialist”. The brand CENTURY 21 has developed an privileged global presence. Throughout four decades, the key to success has been, and still is, how the CENTURY 21 service and system adapt to local real estate market dynamics. However, technology, connectivity, and social-cultural movements are transforming the residential real estate market, making it more and more global, given the high number of countries which now have a significant level of transactions with customers of different nationalities, who are looking for residential homes abroad for varied reasons.
As a world leader in the residential real estate market, the CENTURY 21 network has seen a successive increase in this trend. This was the main reason for conducting this Market Pulse Survey, which aims at maximizing local and global insight into the residential real estate market, and the trends of real estate investment flows between countries.
Since the Iberian market - Portugal and Spain – is a destination of choice, in terms of tourism and real estate investment, the findings of this study are extremely important to boost the capitalization of the growth of the residential investment market between countries. The success of this new real estate dynamics will depend on the ability of each country to attract international customers and to adapt to the growing global market.

Ricardo Sousa

Century 21 España
Century 21 Portugal