Don Piso Invests €36M To Build New Homes In Barcelona

11 July 2016 – La Vanguardia

The real estate group Don Piso has 10 housing developments underway, worth €36 million, in the province of Barcelona, according to its majority shareholder and CEO, Luis Pérez. “Property development has always been a complementary part of our company’s activity; we mainly focus on brokering the sale and purchase of homes”, explained Pérez. The group, which has created an independent company for each construction site, has already completed one development in Badalona, the first one it started following the end of the real estate crisis; and it expects to finish its flagship development, opposite the Clínica Quirón in Barcelona, on the site of the former headquarters of the Tusquets publishing house, in September. In addition, Pérez explained that the group has three developments underway in l’Hospitalet de Llobregat, two in Cornellà and three in Sabadell. “We buy small plots of land on which to construct between 10 and 30 homes, in areas where we already have representatives and therefore where we know the market”, he explained. The developments are all at different phases, some are still under construction, whilst others are waiting for licences to be processed.

Don Pizo, explained Pérez, has accelerated its pace of growth to manage the increase in transactions being brought about by the real estate recovery. Thus, he explained, the group already owns 20 offices of its own and a network of 51 franchised agents. “We are going to open an office in Madrid, with 8 people, which will operate as a sales office and which will also centralise the relationships with our franchisees: this represents our return to this market following the crisis”, he explained. The firm has also returned to the Canary Islands, where it had 60 offices before the crisis. “It is a very important market and we have hired a very powerful local partner there to undertake the significant expansion”.

Don Piso used to have more than 400 offices before the outbreak of the real estate crisis, in 2007 – it owned 156 of those outright and also had more than 260 franchises, but the crisis forced it to cut back, to just 8 own offices and less than 20 franchises, with a workforce of 40 people. Thanks to the recovery of the market, the firm now employs 296 people.

“We are enjoying an ideal market at the moment, with affordable prices and satisfied buyers. We hope that the market will continue like this, with price increases of between 2% and 6% p.a., and that we avoid repeating the mistakes of the past”, he acknowledged. Last year, Don Piso recorded a turnover of €7 million and brokered property sales worth €92 million. The firm, which returned to profit in 2014, expects to close this year with a 30% increase in revenues, to reach €9 million, with brokered property sales of €117 million.

Original story: La Vanguardia (by Rosa Salvador)

Translation: Carmel Drake

Don Piso Plans To Open 30+ New Branches In 2016

29 December 2015 – Cinco Días

The real estate company Don Piso plans to open around 34 new offices in Spain in 2016, of which 22 will be franchises, according to a statement made by the company yesterday.

Don Piso’s agency network will open four new offices, all operating under franchise agreements, before the end of the year, taking its total number of offices to 60, which represents growth of 27% with respect to 2014 (…).

Two of the four new offices will be opened in Madrid, with new offices also opening in the cities of Menorca and Salamanca, according to a statement issued by the real estate company, which is headquartered in Barcelona.

The chain currently has 18 owned offices and the forecast for 2016 involves expanding that number to 30. Moreover, in terms of its franchises, the company expects to increase the number from 38 to 60 by the end of next year.

Growth plans

These plans for growth, together with the fact that the Don Piso network has not closed down any owned or franchise offices in the last five years, according to the company, means that its managers are certain that the franchise arrangement is currently the preferred business model in the sector.

“As a result of the strong performance shown by the consolidated data for the real estate market, we think that now is a good time to invest in the sector through real estate franchises, as a highly profitable model in the short and medium term”, says Emiliano Bermúdez, Assistant Director General of Don Piso and head of brand growth.

Created in 1984, the company currently has a significant network of offices in the country’s main cities and a turnover that has enabled it to act as the intermediary on property sales worth more than €500 million in the last year. The company provides sales, rental and renovation services and employs 296 people.

Survivor of the property crisis

Don Piso is one of the survivors of the property crisis. It was created in Barcelona in 1984, as a network of intermediary agencies for the sale of properties. During the boom years, specifically in 2001, its owners sold the company to Ferrovial. Five years later, the company changed hands once again, when it was acquired by Habitat Promociones.

In the midst of the real estate crisis, in 2010, the former founders of the company, led by Luis Pérez Fernández, former Director General of Don Piso, submitted the highest offer in an auction process for the company, organised by the commercial court of Barcelona. The chain, which closed 2008 with losses of €42 million, reduced its network to 60 agencies after implementing a series of cutbacks.

Original story: Cinco Días

Transltion: Carmel Drake

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