GLOBAL REAL ESTATETHINK TANKInvolvement of the Real EstateProfessionals in the developmentof new metropolisesVahagn Movsesyan, Ph.D.International Projects ExpertFNAIM International ConventionParis, 11 December, 2012
Outline Global RE Think Tank What and Why? Participants and Past Meetings Web resources Development of the new metropolises worldwide:Some examples Real Estate professionals involvement in theseprocesses: The state of the art Open questions for discussion
Global Real Estate Think TankAims and Opportunities
What is the Real Estate Think Tank?• Platform for industry best minds to discuss timelystrategic issues affecting the future of the profession.• Four key areas of focus:1. Calendar Coordination: Global calendar to coordinateevents for maximum participation.2. Image, Business Ethics and Communication: Improveprofession business ethics and communication; considerways to project the most positive image to pubic.3. Lobbying for the Profession: Formulate strategy for theindustry future around common interests, includingregulation, consumer protection and security oftransactions.4. Civic City Planning & Sustainable Development:Role of the profession in the planning, consultation andparticipation in community civic city planning asit relates to quality of life.
Why a Real Estate Think Tank?Mission Statement:“To promote best practices as they pertain to our industry on a globalscale. This is not the creation of a new organization, but rather bringingtogether the best minds from existing organizations to discuss timelystrategic issues that affect the future of the global organized real estateprofession and to bring new ideas to the table, providing organizationsan opportunity to be engaged in a dialog regarding these issues. Thestated purpose of this new platform is for an exchange of industryknowledge and experience from which all can benefit.”
Participating CountriesAustriaBelgiumBrazilBulgariaCanadaCzech RepublicDenmarkEgyptFinlandFranceGermanyGreeceHollandIndiaItalyJapanKazakhstanLuxembourgMexicoPanamaPhilippinesPortugalRomaniaRussiaSpainTaiwanTurkeyUkraineUnited KingdomUnited States Formed in December „09 in Paris with 25 countries Participation open to leaders of associationsand organizations around the world
Involvement of RE professionals inthe development of new metropolises• Development of new metropolises:Growing population in Slow &(Mega/Meta)Cities• State of the art worldwide concerning theRE professionals involvement in theseprocesses.• What should be the role of the REprofessionals in all these?
Development of new metropolises• In 1975 only 38 % of the world‟s population livedin cities.• Since 2008, more than 50 % is already living incities, and this is going to increase towards 2/3by 2030.• By 2050, the global urban population will reachup to 7 billion people (double than today).• Currently the United Nations count 25 mega-cities exceeding 10 million inhabitants.• This number is expected to grow to 26 in2015 with 22 in emerging economies.
A megacity (megapolis) is a metropolitan area with a total population of>10 million people. Metacity or hypercity = cities with >20 million people.
“Cittaslow” concept• Population < 50,000 residents• Movement started in ‟90s in Italy• Municipalities should respect the nearly 60 goalsand principles of the organization, including butnot limited to:– Protecting the environment,– Promoting the cultural diversity and uniqueness,– Inspiring to a healthier lifestyle,– Resisting the homogenization and globalization oftowns worldwide, etc.• More on http://www.cittaslow.net
“Cittaslows” worldwide147 Cittaslows in 24 countries
The expected picture• The scale and the pace of global urbanization isunprecedented and its impact will be felt in allspheres of our life, including the RE profession.• This new urban world comes with complex newenvironmental, economic and social challenges.• It represents a unique opportunity to build moresustainable, vibrant, innovative and equitablecommunities.What is (should be) the role of the REprofessionals in all these?
What’s our role (should be)?• National governments are not in the position to fundcity infrastructure any longer, so cities must think ofcreative ways to finance their own projects.• The involvement of the private sector in a PPP maybe a key option in the financing of new projects.Can we promote projects that attractforeign investment and capital using ournetwork and reputation?Securing investments for the Urban Century?
What’s our role (should be)?Ciudades Latinas• Como Vamos: a group of entrepreneurs that based on the completeset of indicators promoted investments through more transparentdialogue b/w stakeholders.• Examples: Lima, Chile, Colombia… Transparency and disclosure matter!• Case of Brazil:– Ethos Institute (platform for an inclusive, green and responsibleeconomy: they integrated new actors, such as businesses).– New Cities Foundation in Dona Marta (Favela Santa Marta), Rio deJaneiro Do we believe that if the civil society and the private sectorwork together to define their needs and solutions, thegovernments would follow in their viewpoint?
What’s our role (should be)?Modern Urban Utopias? Skolkovo, Russia King Abdullah Economic City, Saudi Arabia Suzhou Industry Park, China Lavasa, India Top-down and Bottom-up (either one of them, or mostlytheir mixes) approaches, where the private sector playsa huge role. Are we involved? Should we be involved anyhow?
Skolkovo, Russia• The aim was to diversify the economy and to commercialize thetechnology!• The key points are: the efficient social interactions and strong ICT network.• 400 companies, universities/research centers, leading masterplanners/architects have worked to develop open green spaces and low-rise residential areas.
King Abdullah Economic City,Saudi Arabia• The aim is to diversify the sources of economic growth, currentlydependent on oil.• The government DID NOT financially support the project!• The private sector has evaluated this project through consumerbehaviors to readjust and update throughout time.
Suzhou Industry Park, China• The aim is to increase the international competitiveness by stimulating theeconomy with a shift from manufacturing to service industry.• One of the most competitive parks with annual GDP growth rate of 30%!!• Some 90 international companies involved.
Lavasa, IndiaThe aim is to respond to rural-to-urban migration, by constructing schools andindigenous villages around the city. NO financial support from the Government.
Greater Paris!Reinventing the city of light!• The emergence of the Greater Paris has been crystallized inthe MASSIVE consultation in which the central Government,the local authorities, city planners/architects, civil society andprivate sector representatives have been involved (though noconsensus has been reached yet!)• Are we involved sufficiently?
Lobbying in the US on REindustry, 2012Total for Real Estate: $55,697,526Total Number of Clients Reported: 216Total Number of Lobbyists Reported: 569Total Number of Revolvers: 387 (68.0%)Source: Center for Responsive Politics, OpenSectrets.org
Real Estate is our Profession,Politics is our Business?!• Is the Lobbying (in a positive sense!) our way to go in thelocal, regional and national level!?• Cases:– Insulation b/w inside & outside walls; “call for actions” – result: positive!– May a RE professional run for public post, e.g. for the mayor of the city?Should we eliminate these kind of barriers?!• Are we the barometers of the market?! Shall our associationsbe involved in the urban development (sitting on the boards,voting for projects, providing consultancy…)?• Shall we run for this, otherwise we‟ll be left outside?!• Are we a major stakeholder, our voice should be considered!?
Open questions for discussion• Are we involved at all? How?• Is it “enough”? Is there a missing part still?• Are we (should we be) actors or just spectators?Should we change our image for the years tocome?• Should we be more active on this, or it‟s not our“business”? Should we create a group for discussing &preparing a draft of the action plan?
28Merci Beaucoup!Thank you for your attention!Vahagn Movsesyan, Ph.D.Vahagn.Movsesyan@gmail.com