Real Estate Companies Spring Up After Six Years

20/02/2014 – Cinco Dias & El Confidencial

During the real estate boom in Spain, the real estate agencies have been almost as numerous as bars. In 1995 and 1996 there have been only 6 operative franchise chain in the sector. In 2006, their number reached 59 with 4.583 establishments. At the arrival of the recession, about 70% – 80% of them shut down (17 left). 15.000 people lost their jobs (…) The only companies that survived were the deeply rooted and located in the primary areas of cities that offered the best housing choice.

Now, six years later, forecasts have changed and for the first time large chain agencies return to the market. One of them, RE/MAX chaired by Javier Sierra, opened 24 offices last year and is planning next 30 new openings this year. “The number of people seeking advice and help in our company is growing”, justifies Sierra. (…).

 Alfa Inmobiliaria is another example of rising interest in the sector. “At the end of 2013 we received many proposals of joining our network” explains Jesús Duque, vice-chairman of the real estate firm. “War-horses of the market recognize emerging opportunities rapidly”, he adds. Also, he complains that “we receive only 1.75% commissions instead of 2% or even 3% ones from before”.

Moreover, Look & Find has just added new offices to the 58 existing ones in Las Palmas de Gran Canaria, in the center of Valencia, Valladolid and Zaragoza. (…)

Another leader on the market, Tecnocasa, opened 5 new branches in Barcelona, Valencia, Zaragoza and Puerto de Santa María in Cadiz area. Today the agency is at the verge of inagurating next 9 new offices and by 31st March it will add to its management 7 more. (…) Tecnocasa aims at having two to three branches in main districts of the cities.

Naturally, more offices mean more professionals. They are better trained and very competitive, rasing the bar on the market. One of the real estate companies´biggest rival are banks that pursue at shedding their property assets. Some of the companies decided to join Sareb´s trading team.

Entire market is experiencing an atmosphere of enthusiasm that fuels decisions to open more offices. (…).



Original article: Cinco Días (Raquel Díaz Guijarro) & El Confidencial (Elena Sanz)

Translation: AURA REE