INTERNATIONAL
New developmeNts Many agents started their international diversification by concentrating on developments. Winkworth International Developments represents developers in Morocco, Egypt, Mauritius, Mexico and the Caribbean, as well as other markets, specialising in new build and off-plan sales. Mike Bidwell says Fine & Country is frequently approached by developers and by giving the agent a large slug of new business, developers can make a big difference to the economics of starting up. But this changes as networks mature.
Andrew Hawkins says Chestertons used to get 80 to 90 per cent of its international business from new developments. Now, it’s 40 per cent, as the proportion of individual resales has risen, directly attributable to the growth of the network. Network growth is being measured in terms of the underlying business, rather than the number of offices. While the model for residential agency
in the UK has until very recently been driven by numbers of branches, the same doesn’t seem to apply to any of the international operators. Mike Bidwell says, “We want to take the
brand worldwide but we’re not driven by numbers – we’re driven by quality.” That might have something to do with the economic environment, but it’s clear that market leadership and quality of service are
Over the next five years I would look
to move to having a proprietary position in our international
businesses.’ Bill seigle CluttoNs
extremely important criteria for him. For Bill Siegle, the big target isn’t the
number of offices but the amount of business sourced from them. He says “We aim to source at least 50 per cent of our business abroad for both commercial and residential; we’re not hitting that at the moment, we’re about 25 to 30 per cent.” The long term plan is get coverage in
India, the Far East and Pacific Rim within the next five years or so. America, both North and South, is also attractive, Siegle says, but might be a longer term move. As international networks grow, they
are likely not just to increase in size, but actually change their nature. There will undoubtedly be more cross-selling between branches, with business flowing in both directions – foreign property into the UK, and UK property to foreign buyers. Bill Siegle notes that there’s a lot of private wealth in the Far East ready to
Chesterton has an office in the ever popular island of Majorca
invest in UK residential property; some developers are already promoting their properties in Hong Kong and Singapore. Chestertons too is seeing an increase in
the number of international buyers for international property as its network expands, the dynamics of the business will change as the network grows, according to Andrew Hawkins. Local branches also need to serve the
local market and are not just feeder businesses for the UK. Mike Bidwell says that, “In Spain for instance, we would need to engage with the Spanish market, not just Brits buying in Spain. Demand from Brits is just skimming the surface of the market.” In some cases, international expansion
may even change the nature of the parent firm. Bill Siegle says of Cluttons, “We are based in the UK and run our operations from the UK. But we will move towards being a global business. While we currently work with partners, over the next five years I would look to move to having a proprietary position in our international businesses.” That might mean that in ten years’ time, it will be the British who dominate the global market, at least in high-end residential property – if they don’t, it won’t be for want of trying.
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MAJORCA
PROPERTYdrum JUNE 2010 53
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