Product Overview

Europe has been one of the great political success stories of the post-war world. The birth of the European Union (EU) in 1950, the fall of the Berlin Wall in 1989 and introduction of the euro in 2002 are three of the major events that have facilitated Europe’s unification, stabilization and economic growth. Unified Germany has become a leading country and its success and growth has opened the way for considerable modernization and growth for the ex-Eastern Bloc nations, formerly under Soviet rule. The EU began with six nations, Belgium, Federal Republic of Germany, France, Italy, Luxembourg and Netherlands. It now numbers twenty-five, and will expand to twenty-seven members in 2007. Many of the member countries are former communist countries of Central and Eastern Europe.

In spite of all the noted progress, these are critical times for Europe. The European Union Constitution has been rejected in France and the Netherlands, there are major disagreements over the next five-year budget, and the persistent question of whether Turkey should become a full member of the European Union are all major challenges.

Turkey submitted its first EU membership bid in 1982 soon after Greece became a union member. The talks have not been able to progress for more than 20 years. In 1997, during talks about expansion, Turkish Islamic leader Necmettin Erbakan made it clear he was determined to make Turkey a solely Islamic state. According to a recounting of events in Pravda, this fact did not bode well with the EU member selection committee. Turkey membership was rejected. After the 1997 rejection, Erbakan was overthrown and Turkey started conducting serious reforms. The Turkish government had to abolish the death penalty, acknowledge the existence of national minorities, Kurds first and foremost, and sign a trade agreement with the EU. Other membership criteria include that all Turkish ports must be open to vessels of EU members, including Cyprus. The problem of Turkish-Cypriot relations is of great importance. Conflict between the two countries crosses centuries. This historical adversarial relationship may ultimately be the deciding issue for EU acceptance.

In addition to the Turkish relationship with Cyprus, Kurds and the weak economic development, another huge obstacle for Turkey’s admission to the EU is that opinion polls show only 20 percent of Europeans are ready to see Turkey as a member of the European Union. Admission to the EU includes complicated issues involving history and current events. Turkey has worked to appease the current EU members nonetheless, there are still those who do not feel they qualify for membership. One such leader is French President Jacques Chirac who, in a Voice of America interview said “Turkey needs to undergo a cultural revolution before it can join the European community.” Austria would like for Turkey to be granted “special partnership” instead of full membership and Greece and Turkey are long-standing adversaries.

If accepted, Turkey, with its 66-million strong population, has the opportunity to become the second largest state of the European Union and a country full of opportunities. The overall impact of globalization has driven Europe to become a major market in competition with the Americas and the Asia/Pacific region. Consequently, Europe is a very active source and target of international real estate investment. This is due in part to the size of this region which offers tremendous investing potential. Real estate is complex enough locally. Adding the international element makes it more so. One major facilitating factor for doing business in Europe as well as globally is The International Consortium of Real Estate Associations (ICREA). ICREA helps consumers understand the global market business practices. Members also adhere to a code of ethics that commits them to professionalism and service to their customers and clients. These elements, plus ongoing efforts to standardize transaction practices throughout member countries, will make global transactions less complicated. Bringing all of the factors together will take a lot of time but the goal is clear.

Knowledge and awareness of basic cultural, political and economic conditions in Europe will enhance a real estate professional’s ability to represent, interact with, and command the respect of clients. The concept of unification is still new and there are many who do not want to lose any more of their national identity. These are important facts to know and understand as you work with customers and clients from affected countries.

This course addresses the economies, real estate practices, and markets of the countries that are the most active and attractive European investment markets. Also included is information on skills and procedures for finding potential clients and properties, basic business protocols and conducting an international real estate business in the region.

Instructor Overview: David Wyant