6️⃣Restriction to Markets

Conducting real estate transactions across international borders presents various challenges, with regulatory complexity and currency exchange fluctuations at the forefront. For instance, foreign real estate buyers in countries like the U.S. accounted for $53.3 billion in sales from April 2022 to March 2023, but these transactions often require compliance with a myriad of national laws, local zoning regulations, and tax obligations.

The volatility of currency exchange rates can also impact the cost of cross-border deals, with exchange rate shifts adding unforeseen expenses. Additionally, cultural differences in negotiation styles, legal documentation, and business etiquette further complicate these transactions, necessitating a deeper understanding of local customs and practices.

Many foreign investors face significant barriers, including a lack of knowledge about local markets, complex transaction processes, and the absence of standardized platforms for electronic transfers and property registrations. The current reliance on local brokers and intermediaries can lead to inefficiencies and delays, often resulting in missed opportunities as desirable properties are sold before transactions are finalized.