In the financial year 2013, the Engel & Völkers Group increased its total commission revenues by 18.2 percent to 272.9 million euros (2012: 230.8 million euros). This marks yet another record in the 35-year history of the company. This high turnover result can be attributed first and foremost to the tremendous growth of the Group in international markets. In the 37 countries operating outside of Germany, the Group commission revenues rose disproportionally by 28.3 percent to 104.0 million euros (81.0 million euros). The Commercial division also achieved an exceptional rate of growth, increasing revenues by 29.8 percent to 66.8 million euros (51.5 million euros) and securing the best result for the division in the company’s history in the process.
Generating more than a third of the entire Group commission revenues, the Residential division in Germany also made a significant contribution to the good financial result. “Al-though the brand’s presence covers virtually the whole of Germany, leaving little scope for further expansion, we still managed to build further on our strong market position and exceeded the 100 million euro mark for the first time in 2013,” said Christian Völkers, CEO of Engel & Völkers AG. The residential property shops in Germany, totalling more than 200 altogether, increased their Group commission revenues by 3.9 percent, also setting a new record with revenues of 102.1 million euros (98.3 million euros).
New Metropolitan Market Center concept successfully established on the market
The company focused particular attention on establishing and expanding the brand overseas and in Spain in 2013. “It is the consistent development of our brand presence in key markets that has brought about these new record figures. This development has been spurred along even more by the significant upturn in economic fortunes for real estate markets internationally,” Mr. Völkers said.
A new concept was realised for the first time in the spring of 2013: The Company’s very first Metropolitan Market Center (MMC) MMC has opened in Barcelona. The MMC is a city-based flagship store from which several hundred employees operate the local markets. This new concept was a central factor contributing to the 50.0 percent rise in Group commission revenues by Engel & Völkers in Spain over the past year.Holiday properties in Spain like this Finca on Majorca were experiencing a particularly high level of demand in 2013. The Mediterranean residence in Santa María has ten rooms on approx. 670 sqft and is up for sale through Engel & Völkers for 4.5 million euros.
Substantial growth was also recorded by Engel & Völkers in North and South America, where property markets have developed strongly once again. In 2013, Group commission revenues increased by 51.0 percent in the United States and by as much as 54.0 percent in South America.
Apartment and office buildings: individual properties from portfolios in demand
The continuing high level of demand for multi-purpose apartment and office buildings in Germany were instrumental in the extremely successful growth of the Commercial division. This manifested itself above all in 2013 in the sale of individual properties from a portfolio distributed nationwide and consisting of far more than one thousand such properties. “Besides the demand for large-scale property portfolios, interest in sales of individual properties is also on the rise, as investors seek to boost their income once again,” Mr. Völkers added.
In terms of the brokerage of commercial real estate, Engel & Völkers has – above all in Germany – a broader positioning than hardly any other company. This places the Group in a position to utilise entire portfolios particularly effectively.
Engel & Völkers is forecasting a continuation in its strong growth for the new year 2014. “The good state of the economy is set to remain in most countries. In addition to this, we have been able to establish additional new residential property shops and commercial offices in our key markets. This will play a key part in increasing our revenue streams,” Mr. Völkers stated.
Engel & Völkers plans to bring added impetus to its rate of growth with the introduction of more MMCs. In late autumn of 2013, an MMC was opened in the capital of Columbia, Bogotá. Future MMC openings are initially envisaged in Madrid, New York, London, Dubai and Moscow.