14 May 2018 – Eje Prime
Housers wants to build a niche market for real estate crowdfunding together with small- and medium-sized property developers. The Spanish proptech has launched this new line of business with the opening of two projects in Madrid, but it is already assessing a dozen more “of which three will be announced soon”, according to Francisco Taboada, Director of Real Estate at Housers, speaking to Eje Prime.
“We have realised that the banks are quite reluctant to finance land and, meanwhile, funds are participating in projects with a minimum budget for land purchases of €5 million”, explains Taboada. For this reason, his company has started to finance land for property developers with investments of less than that figure, when it represents around 50% of the development, as a rule of thumb. “In specific cases, that split may be higher, but only in the case of projects where the property developers already have 75% of the flats reserved, for example, which means that the certainty is greater for investors in our platform”, says the director.
Since it started its first studies to finance land in May last year, Housers has financed land worth €16 million for property developers such as ByNok, Senor, Fedezu, Vibopa, Annura, Dicam and Grupo Aransa, for which it financed a project in neighbouring Portugal, which, together with Italy, is one of the two European markets to which the proptech travelled last year to “diversify the locations for our users”, said Taboada.
The executive points out that, amongst other aspects, these type of property developers, with projects that do not tend to exceed thirty homes, are also looking to raise their profiles with Housers. “We have almost 90,000 registered investors and that appeals them”, highlights Taboada, who summarises the benefits of his platform for small property developers in three: financing, marketing and the cross-sales that are generated.
Nevertheless, “there are cases in which some of the users who invest in these projects then become interested in buying some of the units in the development”, says the executive. “Our platform is your shop window”, is what the director says to his potential (property developer) clients.
Create your own reputation through the platform
“Just like Amazon has vendors with very good ratings, we will have property developers with good reputations”, explains Taboada. One of the projects under assessment is located in Palma de Mallorca, which will soon be home to a plot of land for residential development financed by Housers.
This point is noteworthy because the Balearic city is one of the areas where buildable land is most scarce, which has driven up house prices, generating concern amongst citizens, which demand more product in stock.
By how much is this business model from Housers going to grow? “For the time being, of the €50 million that we have financed in total, €15 million relates to this new market niche, and clearly we hope that it will be one of the main lines of business for us”, revealed Taboada.
Four new regions for 2018: Málaga, Euskadi, Sevilla and the Canary Islands
In terms of Housers’ projects for 2018, as well as travelling to the three new European countries, the firm is looking to enter the markets in Málaga, Euskadi and Sevilla, as well as in the Canary Islands. “Moreover, we want to consolidate our presence in the cities in which we already operate, namely Madrid, Barcelona, Valencia and Palma”, says the director. The company aims to accumulate investment of €90 million and to have 125,000 users on the platform before the end of the year (…).
Original story: Eje Prime (by Jabier Izquierdo)
Translation: Carmel Drake