Covid an ‘accelerating lever’ in Spanish market – study

1 February 2021 | Investment

Covid an ‘accelerating lever’ in Spanish market – study

Engel & Völkers Spain reported a total of 2,624 sales transactions worth just over €1,600 million In 2020, with a 2.6% increase in the average price of property sold rising to €611,071.

It also highlighted an increase of 11.5% for its rental division completing 3,181 contracts with an average of €1,923 per annum – achieving a total of €73.4 million.

Juan-Galo Macià, chief executive officer of Engel & Völkers for Spain, Portugal and Andorra, comments: “Although the coronavirus has slowed the upward trend in real estate sales transactions, it has also acted as an accelerating lever in the rental market.”

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“The higher volume of rental business is due to the increased price at which leasing operations were closed, achieving an average of €1,923 per month compared to €1,475 in 2019. The average price of sales transactions also rose to €611,071 (2.6%) because in 2020 we sold some of the most expensive and exclusive properties we had in our portfolio.”

The decrease in sales activity in the second quarter due to the pandemic gave way to what Macià describes as an unprecedented rebound in the third quarter. Consequently, Engel & Völkers Spain ended the year better than expected.

He explains: “Despite the challenges last year, and contrary to what was expected, the Engel & Völkers Spain network grew, largely thanks to increased investment and the acquisition of new licenses underlining the confidence and trust in the brand within our network, a factor that is regarded as one of the principle guarantees of Engel & Völkers as the leading real estate agency in innovation and digital technology.”

“This is one of the main reasons why the Group will continue to support and incorporate new talent into the organisation with the aim of recruiting 2,000 real estate consultants by the end of the year.”

Double-digit growth for Engel & Völkers Worldwide

Engel & Völkers Group Worldwide saw significant growth in 2020, with commissioned income rising 14% to €937.4 million.

When speaking on the positive evolution of the business, global chief executive officer Sven Odia says: “It demonstrates the success of the high and constant quality of service that we offer our clients, even during the highly uncertain period that we experienced last year.

“The combination of innovative technological tools and personalised advice allowed us to maintain operations during blackout periods and expand our global network to more than 13,500 people. Furthermore, in some locations we have even set billing records.”

The total volume of sales transactions by the Group reached €27,000 million in 2020, compared to €23,000 million the previous year, driven by buyer activity during the months in which protection measures were relaxed and it was possible to travel.

Worldwide, the highest growth in the residential estate segment was centred in North America, where revenues rose by 38.4% due to the expansion in the United States and Canada – markets where the demand for properties in suburban and rural areas has notably increased.

The Group also achieved success in the DACH region (Germany, Austria & Switzerland), with an increase in turnover of 10.6%, followed by 5.2% in Italy.

This post has originally been featured in Property Investor Today.