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

Mission Accomplished For 2017: DonPiso Opens Its 100th Branch In Spain

7 November 2017 – Eje Prime

Mission accomplished for DonPiso in 2017. The Spanish real estate agent has fulfilled the plans it set out for this year to have 100 branches and to sign 3,000 operations.

The company’s new delegation in Barberà del Vallès (Barcelona), plus the three franchises it signed recently in Madrid, Pamplona and Badalona, take the number of branches operating under the DonPiso brand into the three digits.

Of DonPiso’s establishments, 76 are franchises and 24 are owned premises. The real estate broker has increased its number of branches in Spain by 24, which has allowed it to grow its transactions statistics by 20%.

“Our objective this year was to grow in a sustained way and in line with the market. The real estate sector has shown itself to be very strong over the course of the year”, said the Deputy Director General of DonPiso, Emiliano Bermúdez.

Similarly, the company has explained that its most recent commitments respond to the “high dynamism” of the Madrilenian, Catalan and Navarran markets. In the first two cases, the investment is justified since the regions are the motors of the Spanish real estate market, whilst in the case of Pamplona, the supply and demand for housing in the city makes it one of the most stable markets in the country.

Founded in 1984, DonPiso is currently in the process of investing €22 million in the residential segment, to build fifteen developments and extend its network of branches to 120 in 2018.

Original story: Eje Prime

Translation: Carmel Drake

DonPiso: Invests €22M In Residential & Plans To Have 120 Offices By 2018

29 June 2017 – Eje Prime

It is one of the survivors of the property crisis, but with differences. DonPiso, founded in 1984, has lived through several economic crises and has seen itself both grow and contract. It has changed hands several times and has reached a new economic cycle, in which, finally, the real estate business seems to be getting a break. (…) It plans to have 120 offices operational this year and invest more than €22 million on the construction of around fifteen residential developments, as Emiliano Bermúdez, Deputy General Manager of DonPiso, explained to EjePrime.

DonPiso was one of the first real estate agencies to be founded in Spain, along with Grupasa, although it was not until 1997, that it began its expansion through franchises, achieving penetration across the whole of the Spanish market. Its mixed model, based on intercalating the opening of own offices with franchises, allowed it to leave Barcelona and begin expanding across the national market. “The results broke all expectations”, recalls Bermúdez.

In 2001, DonPiso was acquired by Ferrovial and, in 2006, it changed hands once again, on this occasion to be controlled by the real estate group Habitat. It was then, when the firm had a network of almost 400 offices, that the economic crisis hit its business, forcing Habitat into creditor bankruptcy and, whereby, leaving DonPiso in a delicate situation.

“Luis Pérez, José Antonio Pérez, Miguel Ángel Vázquez and I (Emiliano Bermúdez) joined forces and took control of DonPiso for €1.8 million”, said the Director. The distribution network was cut to fifty offices.

“We now find ourselves in a new era for DonPiso” – added the Director, “We have been born again and we have managed to weave a network of 90 establishments”. “The company is smaller, but it is not unreasonable to think that, at some point, we could be as large as we were ten years ago”, said the Director.

Roadmap 

In this way, DonPiso has set itself some ambitious objectives for the next few years. According to the company, the optimal outcome in 2017 would be to reach a network of 115 operational offices across Spain, which would mean opening 25 more in the next six months. Bermúdez sees that as “more than feasible, thanks to the pace that we are enjoying”.

Besides second-hand homes, the company’s plans also include a sizeable business relating to the new home segment, with its residential developments. It is currently marketing seven developments. “This year, we will build six more, at least, depending on the buildable land that we are able to access and in 2018, we plan to build between 5 and 6 additional developments”, added the Director.

According to DonPiso, each development requires an initial investment of €1.5 million. Then, according to the Director, you have to add the other expenses “which tend to be financed through debt and partners joining the project”. “The average DonPiso development sees around fifty homes coming onto the market”, said Bermúdez.

Thanks to all of these plans, DonPiso has also set itself the objective of increasing its turnover. In 2016, the company sold €309.6 million in terms of production, with 2,048 units and the business margin was €1.55 million. “The forecast for this year is optimistic: sales of more than 2,500 units and a growth margin of 25%”, said Bermúdez.

Original story: Eje Prime

Translation: Carmel Drake

Donpiso Will Open 50 New Offices In 2017

30 January 2017 – Expansión

The real estate broker Donpiso will open between 40 and 50 new offices this year, with the aim of strengthening its commercial network in the Spanish market. The company opened 30 new offices last year and brokered operations worth €375 million in total, up by 76% compared with the previous year (€213.4 million). In 2014, its brokered volumes amounted to €139.4 million. The company brokered 2,503 operations last year, almost twice as many as during the previous year.

Donpiso’s plans include having 120 offices in its network by the end of the year. Most of the new offices will be opened in the Community of Madrid, the Community of Valencia, País Vasco, Andalucía and the Canary Islands.

Last year, the most significant increase in terms of office numbers was seen in Cataluña, where the firm’s central headquarters are located.

The company’s expansion is based on a mixed model. Of the new offices opened in 2016, eight were owned offices and 22 were franchises. This year, the firm wants to maintain the same proportion, and whereby exert full control over c. 25% of its offices.

Donpiso, which recorded turnover of €7.5 million last year, will invest €2.5 million on its expansion plans, of which €500,000 will be allocated to opening its own offices and the remainder to its franchises. The company will recruit 120 workers during this process.

The company is also constructing 13 urban developments, all of which are in different phases of progress. Its developments are mainly located in Barcelona, as well as in towns in the Catalan capital’s metropolitan area, such as Badalona, Sabadell and Cornellà.

Recovery

The firm has enjoyed a progressive recovery since 2009, when the current Director General, Luis Pérez, acquired the Donpiso brand for €1 million.

The company, which was owned by Ferrovial until 2006 and by Habitat for the next three years, had a network of almost 400 offices across the Spanish market before the crisis hit.

Original story: Expansión (by E. Galián)

Translation: Carmel Drake