Presentation "Involvement of Real Estate Professionals in the Development of New Megalopolises" by Vahagn Movsesyan at the Global Real Estate Think Tank meeting in Paris, on December 11th, 2012

1. GLOBAL REAL ESTATE
THINK TANK
Involvement of the Real Estate
Professionals in the development
of new metropolises
Vahagn Movsesyan, Ph.D.
International Projects Expert
FNAIM International Convention
Paris, 11 December, 2012

2. 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 these
processes: The state of the art
 Open questions for discussion

3. Global Real Estate Think Tank
Aims and Opportunities

4. What is the Real Estate Think Tank?
• Platform for industry best minds to discuss timely
strategic issues affecting the future of the profession.
• Four key areas of focus:
1. Calendar Coordination: Global calendar to coordinate
events for maximum participation.
2. Image, Business Ethics and Communication: Improve
profession business ethics and communication; consider
ways to project the most positive image to pubic.
3. Lobbying for the Profession: Formulate strategy for the
industry future around common interests, including
regulation, consumer protection and security of
transactions.
4. Civic City Planning & Sustainable Development:
Role of the profession in the planning, consultation and
participation in community civic city planning as
it relates to quality of life.

5. Why a Real Estate Think Tank?
Mission Statement:
“To promote best practices as they pertain to our industry on a global
scale. This is not the creation of a new organization, but rather bringing
together the best minds from existing organizations to discuss timely
strategic issues that affect the future of the global organized real estate
profession and to bring new ideas to the table, providing organizations
an opportunity to be engaged in a dialog regarding these issues. The
stated purpose of this new platform is for an exchange of industry
knowledge and experience from which all can benefit.”

6. Participating Countries
Austria
Belgium
Brazil
Bulgaria
Canada
Czech Republic
Denmark
Egypt
Finland
France
Germany
Greece
Holland
India
Italy
Japan
Kazakhstan
Luxembourg
Mexico
Panama
Philippines
Portugal
Romania
Russia
Spain
Taiwan
Turkey
Ukraine
United Kingdom
United States
 Formed in December „09 in Paris with 25 countries
 Participation open to leaders of associations
and organizations around the world

7. Past GRETT Meetings

8. Involvement of RE professionals in
the development of new metropolises
• Development of new metropolises:
Growing population in Slow &
(Mega/Meta)Cities
• State of the art worldwide concerning the
RE professionals involvement in these
processes.
• What should be the role of the RE
professionals in all these?

9. Development of new metropolises
• In 1975 only 38 % of the world‟s population lived
in cities.
• Since 2008, more than 50 % is already living in
cities, and this is going to increase towards 2/3
by 2030.
• By 2050, the global urban population will reach
up 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 in
2015 with 22 in emerging economies.

10. A megacity (megapolis) is a metropolitan area with a total population of
>10 million people. Metacity or hypercity = cities with >20 million people.

11. Megacities 2000

12. Megacities 2015

13. “Cittaslow” concept
• Population < 50,000 residents
• Movement started in ‟90s in Italy
• Municipalities should respect the nearly 60 goals
and principles of the organization, including but
not limited to:
– Protecting the environment,
– Promoting the cultural diversity and uniqueness,
– Inspiring to a healthier lifestyle,
– Resisting the homogenization and globalization of
towns worldwide, etc.
• More on http://www.cittaslow.net

14. “Cittaslows” worldwide
147 Cittaslows in 24 countries

15. The expected picture
• The scale and the pace of global urbanization is
unprecedented and its impact will be felt in all
spheres of our life, including the RE profession.
• This new urban world comes with complex new
environmental, economic and social challenges.
• It represents a unique opportunity to build more
sustainable, vibrant, innovative and equitable
communities.
What is (should be) the role of the RE
professionals in all these?

16. What’s our role (should be)?
• National governments are not in the position to fund
city infrastructure any longer, so cities must think of
creative ways to finance their own projects.
• The involvement of the private sector in a PPP may
be a key option in the financing of new projects.
Can we promote projects that attract
foreign investment and capital using our
network and reputation?
Securing investments for the Urban Century?

17. What’s our role (should be)?
Ciudades Latinas
• Como Vamos: a group of entrepreneurs that based on the complete
set of indicators promoted investments through more transparent
dialogue b/w stakeholders.
• Examples: Lima, Chile, Colombia…
 Transparency and disclosure matter!
• Case of Brazil:
– Ethos Institute (platform for an inclusive, green and responsible
economy: they integrated new actors, such as businesses).
– New Cities Foundation in Dona Marta (Favela Santa Marta), Rio de
Janeiro
 Do we believe that if the civil society and the private sector
work together to define their needs and solutions, the
governments would follow in their viewpoint?

18. 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 mostly
their mixes) approaches, where the private sector plays
a huge role.
 Are we involved? Should we be involved anyhow?

19. Skolkovo, Russia
• The aim was to diversify the economy and to commercialize the
technology!
• The key points are: the efficient social interactions and strong ICT network.
• 400 companies, universities/research centers, leading master
planners/architects have worked to develop open green spaces and low-
rise residential areas.

20. King Abdullah Economic City,
Saudi Arabia
• The aim is to diversify the sources of economic growth, currently
dependent on oil.
• The government DID NOT financially support the project!
• The private sector has evaluated this project through consumer
behaviors to readjust and update throughout time.

21. Suzhou Industry Park, China
• The aim is to increase the international competitiveness by stimulating the
economy 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.

22. Lavasa, India
The aim is to respond to rural-to-urban migration, by constructing schools and
indigenous villages around the city. NO financial support from the Government.

23. Greater Paris!
Reinventing the city of light!
• The emergence of the Greater Paris has been crystallized in
the MASSIVE consultation in which the central Government,
the local authorities, city planners/architects, civil society and
private sector representatives have been involved (though no
consensus has been reached yet!)
• Are we involved sufficiently?

24. NAR and NAHB case

25. Lobbying in the US on RE
industry, 2012
Total for Real Estate: $55,697,526
Total Number of Clients Reported: 216
Total Number of Lobbyists Reported: 569
Total Number of Revolvers: 387 (68.0%)
Source: Center for Responsive Politics, OpenSectrets.org

26. Real Estate is our Profession,
Politics is our Business?!
• Is the Lobbying (in a positive sense!) our way to go in the
local, 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 associations
be 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!?

27. 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 to
come?
• 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?

28. 28
Merci Beaucoup!
Thank you for your attention!
Vahagn Movsesyan, Ph.D.
Vahagn.Movsesyan@gmail.com