Exploring International Real Estate Markets: Insights from Spain, Canada, and Malaysia

International Perspectives on Residential Real Estate Markets

With all the chatter surrounding residential real estate sales in the United States, including concerns over buyer-agent commissions and ongoing legal battles, one may wonder how other countries handle their real estate transactions. Are they facing similar scrutiny? What about commission fees? And how strong are their markets?

We had the opportunity to speak with real estate executives from Spain, Canada, and Malaysia, all members of Leading Real Estate Companies of the World®, to get a comprehensive look at the real estate processes outside of the U.S.

In Spain, Alí Araúz, Senior Marketing Executive at Lucas Fox International Properties in Barcelona, Catalonia, shed some light on the real estate agent profession in the country. Agents in Spain typically work on a commission basis, directly employed by the company with benefits such as Social Security contributions. Despite not being common in the Spanish real estate sector, this employment model offers stability and growth opportunities for professionals in the industry. While the Spanish property market slowed in 2023, it still shows promise for sustainable growth in the coming years.

Moving on to Canada, Kevin Sing, President of DFH Real Estate Ltd. in Victoria, British Columbia, explains that Canadian REALTORS® are mostly independent contractors, earning income through commissions based on agreements with sellers. Commission structures vary across provinces, with British Columbia generally seeing lower listing commissions. Transparency in real estate transactions is a priority in Canada, with regulations ensuring buyers have independent representation in transactions. The current state of residential real estate in Canada faces challenges of inventory shortages amidst increasing demand.

In Malaysia, Kevin Singham, Owner of Interealtor in George Town, Penang, provides insight into the real estate industry in the country. Governed by the Board of Valuer, Appraiser, Estate Agents, and Property Manager, real estate agents can collect up to 3% of the sales price and 1.25 months of rent for successful deals. The profession is well-regulated in Malaysia, with no significant legal issues affecting the industry. Residential properties make up a significant portion of Malaysian real estate transactions, with prices expected to stabilize in 2024 despite construction costs rising.

While each country may have its own unique practices and challenges in the residential real estate market, one thing remains clear – the industry continues to thrive globally, offering lucrative opportunities for professionals and promising growth potential for the future.