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25 June 2018 – Eje Prime
The new bonanza phase in the real estate sector is triggering the constitution of new companies and, in just one year, Spain registered 33,503 more companies dedicated to real estate activities. According to the latest structural survey of companies in the service sector of Spain’s National Institute of Statistics (INE), the sector contained a total of 169,031 companies in 2016, which represents an increase of 24.7% in just one year.
The property rental segment was a net generator of new companies. Specifically, companies dedicated to the rental of real estate assets increased by 24.3%, to more than 119,400 companies. By contrast, the number of companies dedicated to property sales fell by 10% to just 926 companies.
Similarly, companies undertaking real estate activity on behalf of third parties amounted to a total of 48,665 in 2016, which represents an increase of 26.7% in the census of companies dedicated to this activity in just one year.
The significant increase in the number of companies was not accompanied in 2016 by an analogous increase in the turnover of companies in the real estate sector, although the trend was positive. For the whole of the sector, revenues amounted to €25.7 billion, up by 5.4% compared to the previous year.
Curiously, despite the boom in the constitution of companies, the revenues of rental property companies stagnated: all of the active companies in the sector recorded turnover of €17.5 billion in 2016, down by 0.8%.
By contrast, whilst some of the active companies disappeared, the aggregate turnover of the companies dedicated to the sale and purchase of properties soared by 42.5% to €1.7 billion.
Generation of employment, on the rise
INE’s data also reflects the evolution of the personnel employed by service companies. In this case, the real estate sector as a whole saw its total workforce rise by 15.3% in 2016, to 238,428 workers.
Of that figure, companies dedicated to the sale and purchase of properties accounted for just 2,264 workers, compared to the 142,378 employees who were working for property rental companies.
In terms of real estate activities for third parties, the number of employees amounted to 93,786 people, up by 18.4% compared to a rise in turnover of 16.4% to €6.6 billion.
Original story: Eje Prime (by C. De Angelis)
Translation: Carmel drake