Don Piso now has 120 Branches Following Openings in Madrid, Andalucía & the Canary Islands

2 November 2018 – Eje Prime

DonPiso is strengthening its position in the growth markets. The Spanish real estate company is going to open five new branches in Spain to take its total network to 120 premises before the end of the year. “We are finalising openings in Madrid capital, Leganés, Sevilla, Las Palmas and Tenerife”, explained Emiliano Bermúdez, General Deputy Director at DonPiso, speaking to Eje Prime.

The director highlighted that Madrid, Andalucía and the Canary Islands are “growth markets, where we would like to expand our presence”. In addition to those three regions, DonPiso is accelerating its growth in Valencia and Málaga, where it is working to be able to open new branches soon.

The group, which has a large presence in Barcelona, is trying to expand its brand beyond Spain’s two major cities. In this sense, the company is strengthening its position in Valencia and the Balearic Islands, where the business is now consolidating.

Moreover, the company is working to open new markets in the north of Spain. “We have opened a development centre in the País Vasco and Galicia to grow there in 2019”, explained the director.

Growth of more than 20% with 3,600 homes brokered  

“This year is going well, in line with the market” said Bermúdez. “We expect to achieve growth in our operations of between 20% and 25%”, said the executive, who believes that DonPiso will end 2018 with more than 3,600 homes brokered. In this regard, Bermúdez highlighted growth in the portfolio of real estate in the Canary Islands.

DonPiso is going to generate turnover of more than €30 million this year, after recording €29.2 million in 2017. “For the time being, we are growing at double-digit figures, although I do not think we will reach 20%, like in the case of the volume of operations”, acknowledges Bermúdez. “Now we are waiting to see what will happen at the end of the year because November tends to be a very good month”, said the director.

Nevertheless, Bermúdez is uneasy about the situation is certain parts of the country. “The position is polarising in the major capitals, which are evolving in different ways”, he explained.

All in all, Bermúdez warns that “Madrid and Barcelona are on the verge of topping out price wise if they haven’t done so already”. “The rise in prices is colliding with (very stable) salaries and we have noted a slow down in sales during the second half of the year”, said the director.

The General Deputy Director of DonPiso said that, nevertheless, although “there is a moderate dynamic in the market in Spain, we do not see any problems in the short term”. “In our case, we can assume the response to demand; moreover, we believe that the current difficulties involved with selling will allow us to take on more flats”, says Bermúdez.

In addition to selling and brokering, DonPiso is also promoting homes. This line of business is growing for the company with the new upwards cycle. Although it accounts for a small line on the income statement, the company has fourteen developments underway in Barcelona, which sum a total value of €45 million, as revealed by Eje Prime.

In this area, 2019 is expected to be a year during which we will “collect fruits through sales”, but also launch new developments, according to Bermúdez. “We will launch more projects in the Barcelona metropolitan area: we still have land in El Vallès, El Baix Llobregat and El Maresme”, said the director.

Original story: Eje Prime (by Jabier Izquierdo)

Translation: Carmel Drake