It seems as though we are encountering more and more and property exhibitions every year and while many of these are very useful there is some debate as to how useful, how the information obtained should be used and who actually benefits the most. Over the next couple of years with worldwide property markets under pressure we are likely to see a more aggressive stance taken by some of these properly exhibitions and investors should be aware of the benefits and pitfalls of advice sought and received at these events.
What is the ultimate reason for holding a property exhibition?
The basic function of a property exhibition is to make investors aware of ventures coming to the market, give developers a chance to speak directly to investors and allow investors to question property developers directly on various issues they may have. However, the ultimate aim of any property exhibition is to sell the property and at worst pickup numerous potential leads for the future.
Location, location, location
While you can have the best and most informative product exhibition in the world you actually need to be at a location which reflects the properties and investments you are trying to sell. For example we have seen a massive increase in the number of Dubai property exhibitions over the last few years which has filtered through to the underlying market and brought literally billions of dollars into the region. The majority of these properly exhibitions were originally held in Dubai or countries where property investment sectors were already developed such as the UK and the US – although slowly but surely other areas have been brought into play as and when the more obvious investment markets have been exhausted.
It can often be beneficial to have a property exhibition in the country or the area in which you are trying to sell property as this not only gives the impression of local expertise but also allows investors to potentially look around the market before, during and after the exhibition is over. While some property investors will be blinded by high-tech exhibitions and displays, the core investment community will always look to see the actual properties and areas in which they are being asked to invest.
Salespeople
Many people forget that at the end of the day those working for property development company are employed to sell properties and while there are strict guidelines as to what can be said to potential investors, anything which you hear which maybe catches your attention should be investigated at a later date to ensure all is as it seems.
While we still see headlines regarding rogue property salespeople thankfully this element of the sector has reduced over the years with the major property developers and property exhibition companies aware that this small minority were grabbing all of the headlines for the wrong reasons. Regulations have also tightened over the last decade although there are still marked risks in some of the more underdeveloped property markets which may catch the eye of speculative investors.
You need to be aware of local regulations and local laws before you commit yourself to any kind of agreement and financial obligation.
The property investment community
Many investors will attend some of the major property exhibitions annually to mix with similar minded investors and try to gauge exactly what is going on in various markets around the world. No matter how informed or well connected a property investor may be it is always good to get the opinions of others in the same situation and try to obtain a balanced approach to any potential investment. Even if some of the opinions which come forward are wrong or misleading it is never wrong for any investor to seriously reconsider an investment for what ever reason.
Many visitors to the major property exhibitions in places such as London, Europe, the US and the Far East to name but a few will often have local knowledge that some investors would find difficult to obtain by traditional means. Swapping information, views and thoughts for the future can often be more beneficial to some investors than the actual subject matter being discussed at the property exhibition itself.
Live and learn
The most successful property investors are those who are not afraid to listen to the views of others, even though they may not be aligned with their own particular thoughts, and actually learn from the experiences and knowledge others have obtained. The property investment market can be a very close knit community and the ability to be in touch with what may or may not happen in the future can often be very beneficial when considering your investment options.
New markets
While there is no doubt that property exhibitions are very useful for developed markets and for catching up with recent events and opportunities, perhaps the most useful aspect of them is the opportunity to discuss and consider up and coming property markets which may not yet have hit the popular press. Even though there is an obvious need to double check facts it can often be very beneficial to hear about potential new and exciting markets before general property investors become aware of such opportunities.
Conclusion
In the last few years we have seen a major explosion in the number of property exhibitions in all areas of the world. Those who attend these events need to know exactly who they are dealing with, their reputation and their background. While for many of the more established property exhibitions their reputation goes before them there is a need to do your homework and research some of the smaller events which while offering interesting opportunities need to be considered with a degree of caution.
While it is always good to see what is happening in specific property markets many property investors use these events as a networking tool where contacts in the property investment and the property development industry can be built up fairly quickly. The strength and reputation of any property exhibition is built upon those who are in attendance and those who are actually hosting the exhibitions, do not forget that!