Challenges in STEP 2 - Collation of Analysed Data
6 . The Destination Challenge
Emerging Markets & Economically Developing Countries - Housing markets are restricted in many countries , so even a slight rise or fall in demand can have an enormous effect on prices , causing fluctuations overnight .
Many countries still have unregulated markets , wherein there is no standardised process to rent . In some destinations there are no brokers and no real estate agencies ; all transactions are through word-ofmouth direct with landlords , so at times establishing what is common practice can present very specific challenges .
7 . The Challenge of Working Globally
Data can be sourced directly , on-the-ground or from a distance . There are pros and cons to both methods of data collection :
A Local Professional Knows Their Own Market Reality - Inexperienced foreigners can easily be hoodwinked , and the global real estate market is no exception . Foreigners that fly in as Data Collection Experts can unwittingly fall prey to being fed false data to the supplier ’ s ultimate advantage . They can be shown whatever the supplier wants them to see ; possibly the supplier specialises in a specific area of town or has liaisons with a specific local developer whose properties they wish to promote .
Understanding Local Reality is a Plus - On the other hand , experiencing local reality first-hand can be an enormous asset when assisting expats to set realistic expectations and in understanding the specific challenges posed by the destination in question . First-hand contact with local suppliers can forge more meaningful business relationships moving forward and can give the opportunity to supply training on expectations of global corporate .
Challenges in STEP 2 - Collation of Analysed Data
For housing data to be useful to corporate , cost comparisons must be made , and for any comparison there has to be a constant point of reference .
When categorising property in diverse global markets , establishing a constant can be a major challenge . Consider the difference between the rental housing market in Windhoek , Namibia where expat rental properties are houses , to other cities that only have apartment accommodation , and the contrast between destinations such as Saudi Arabia where expat housing is located within secure compounds , to others where expats live freely amidst the local population .
Data Supply Companies select different constants to catalogue data ; some go by the number of bedrooms a property has and then divide categories between apartment accommodation and house accommodation , while others catalogue property by size ( m2 or ft2 ). Whatever the constant chosen , it must be applied globally .
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