Spain’s recovering property market has fuelled double-digit growth for Engel & Völkers in 2016.
In the first six months of the year, the real estate group’s business transactions in Spain rose by 45.1 per cent to a total sales transaction volume of 690,3 million Euros.
Strong demand for premium properties in beach resort areas such as Mallorca or Marbella as well as in major Spanish cities, where Engel & Völkers has a presence via its Metropolitan Market Centers, have played a key role in the company’s overall growth.
This factor explains why Engel & Völkers Madrid is now positioned as the market leader with a 200 per cent growth in the first six months of 2016. Furthermore, it has extended its influence in the northwest and northeast of the capital, while MMC Valencia has tripled sales because of the strong demand in the districts of Pla del Real and Eixample. Meanwhile, for the third consecutive year, the Centre of Barcelona will achieve a total of 300 million Euros in sales transaction volume, which takes it into the lead position.
In other major cities such as Alicante and La Coruña, Engel & Völkers has managed to gain 5 per cent market share in its first year thanks to mainly local market demand seeking apartments in the city centre and these cities have demonstrated a positive contribution to the company. In Alicante, the volume brokered by real estate in the eastern part of the city has soared to 135 per cent due to investor interest from the national/domestic and overseas customers demanding penthouses and properties with sea views.
Mallorca is another key place that has shown “great results” for Engel & Völkers. With 16 shops around the island and 25 years of expertise, the volume of sales transactions is almost a third of the total recorded by Engel & Völkers in Spain. In the first half of the year, total sales transaction volume reached 218.97 million Euros, which represents an increase of 79 per cent over the same period last year.
The Mallorca property market is performing “above expectations”, says the firm, with a mixture of nationalities making up the their typical buyer profiles, including British buyers, who continue to invest in spite of the recent volatility of sterling.
“In the aftermath of BREXIT our internet requests for property have increased and in some shops, requests have even tripled (including requests from the UK),” says Florian Hofer, Managing Director Engel & Völkers Master License, who sees this as a clear indication that buyers are looking for a stable and safe place to invest in the real estate market.
“Our strong expansion strategy, particularly in Europe and the USA, has had an extremely positive impact on our turnover” comments Christian Völkers, Founder and CEO of Engel & Völkers AG.
The firm continues to set an ambitious goal for the end of the year of recruiting 1,300 additional real estate agents, with nine more offices set to open in Spain alone in the second half of 2016.
Engel & Völkers continues ambitious expansion in Spain and Portugal
13th July 2016
Engel & Völkers is continuing its ambitious expansion plans across Spain and Portugal in the coming years.
Portugal has become a key market for the company, Kilian Gonzalez Fontboté, the newly appointed Director of Sales and Expansion at Spain and Portugal, said at a recent meeting with franchisees.
“The domestic real estate sector has been recovering in recent times, with prices increasing in a surprising way. There is also a very noticeable interest in the renovation of old buildings, particularly in the historic areas of cities which are again in high demand for housing,” Gonzalez commented.
He is tasked with achieving the firm’s ambitious plans for expansion, with five new branches in Portugal set to open by the end of 2016. Overall ths year, 18 new licenses will be opened, followed by a further 20 more in the Iberian Peninsula.
The surge in branches will begin with the opening of an office in Albufeira and in downtown Lisbon, building upon a presence that E&V has established since it first launched in Portugal in 2006. It currently has branches in Cascais, Estoril, Parque das Nações (Lisbon), Restelo (Lisbon), Quinta do Lago, and Lagos (Algarve), which opened at the beginning of June.
The company remains particularly strict in selecting its partners, but the rigorous approach appears to be paying off. In 2015, the business grew by 122 per cent in Portugal and 46.3 per cent in Spain. The firm now registers a turnover of EUR 400 million per year.
Gonzalez expects sales volume to grow by up to 6 per cent for each agency in 2016.
“The aim is to put the brand in major cities as well as in tourist areas, extending the coverage from north to south and also to the island of Madeira,” explains Vera Tavares Kendall, the Expansion Manager of Engel & Völkers in Portugal.Google+