Don Piso Returns to Construction & Starts a Housing Development

9/09/2014 – Expansion

Property management company Don Piso has been prepping for recovery in the real estate sector for over a year. Firstly, the firm hired 42 sales people last year and is planning to sign 100 work contracts more before 2014 ends. Then, Don Piso moved to a bigger office building situated on the Diagonal avenue in Barcelona. Finally, the company has started a new housing development and thereby undertook the activity abandoned due to the crisis.

Its first housing development in years will be located in a high-end area of Barcelona, precisely on a plot where previously stood the premises of publishing house Tusquets. This firm was acquired by the Planeta group and the property fell into hands of Hemisferio, real estate company of the Lara family.

Don Piso paid €2 million for the plot that now will undergo demolishment works followed by construction of an 18-dwelling complex. Trading had begun in July and already 14 homes found their new owners.

Don Pisos CEO, Luis Perez explains that there is an unsatisfied demand for new housing in many spots in large cities like Barcelona, because of construction shortage experienced in the last years. One of the still-available homes from the development offers a one hundred square meter area and costs €540.000, suggesting a price of €5.400 per square meter.

Real estate development is not the leading enterprise field of Don Piso that specializes in property sales and rentals. In bonanza times, the firm used to dispose of 170 own offices and 290 franchises scattered around the country which number now diminished to 11 sales points and 51 franchises.

From January to August, real estate agencies of Don Piso sold 320 dwellings, by 60% more than a year earlier. Yet we cannot speak of a change in the cycle but the pricing expectations of vendors and buyers are levelling out.

In 2009, Don Piso, which formerly belonged to Habitat, was acquired by Mr Perez and three other executives for €810.000 euros.

Last year, Don Piso achieved a turnover of €62 million and presently it markets 31.500 houses in all corners of Spain.


Original article: Expansión (by Marisa Anglés)

Translation: AURA REE