- The premium German real estate company completed the firsthalf of 2016 with a trading volume of 690 million euros
- Between January and June, sales rose by 41% to 1,141 and rentalsincreased by 38.4% to 1,016
- The most expensive property sold by the company totaled 7.8 millioneuros in Puerto de Andratx, Mallorca
Engel & Völkers AG, the leading luxury real estate brokerage, has managed to maintain a pace of double-digit growth in 2016, with Spain being one of the leading countries in the group. In the first six months of the year, the German company's business transactions in Spain rose by 45.1% to a volume of 690,3 million euros.
The growth has occurred in both sales and rentals. Thus, between January and June, sales climbed by 40.9%, completing 1,141 transactions at an average price of 602,765 euros, while rental operations increased by 38.4% over the same period in 2015, close to 1,016. Rentals were at an average price of 2,543 euros.
Strong demand for premium properties in beach resort areas like Mallorca or Marbella as well as in major Spanish cities, where Engel & Völkers is present through the Metropolitan Market Center (MMC) has been instrumental in the great progress of the company.
This is why Engel & Völkers Madrid has positioned itself as a market leader with a 200% growth in the periods mentioned above. 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 reach a volume of trading at 300 million euros, which puts it in the leading position.
Also in cities like Alicante and La Coruña, Engel & Völkers has managed to gain 5% market share in its first year thanks to a mostly local customer demand seeking apartments in the city centre. These cities have shown a positive contribution to the company. The volume brokered by real estate in the eastern part of the city has soared to 135% with a profile shared equally between domestic and foreign customers demanding penthouses and seaview properties.
Business increases by 79% in Mallorca
Without doubt, Mallorca is one of the key places that has shown great results for the German real estate company in Spain. With 16 offices across the island and an experience of 25 years, the volume of transactions is almost a third of the total recorded by Engel & Völkers in our country. In the first half of the year, the company brokered real estate amounting to 218.97 million euros, which represents an increase of 79% over the same period last year.
Among these sales, the most expensive property in Spain was sold by Engel & Völkers. The property, for which, 7.8 million euros was paid for, was located in Puerto de Andratx. This further strengthened the reputation of the company and proved that it's not only the most successful real estate brokerage in Spain, but it also ranks second as the best independent German company in the world.
The Mallorcan property market remains in top form and proof of this is in the average selling price obtained by the real estate on the island between January and June, which stood at 1.3 million euros. That's more than double for the entire Spain.
The profile of buyers is a mixture of various nationalities, including British, which continues to invest despite the recent volatility of sterling. Florian Hofer says: "As a result of Brexit, we have witnessed a significant increase in requests about properties through the Internet, which in some areas, the demand for information about properties has tripled." Florian Hofer, the director of Engel & Völkers Baleares, sees this as a clear indication that buyers are looking for a stable and safe place to invest in the real estate market.
The Balearic Islands have always been a major attraction for German, Scandinavians, and British. These customers are very interested in quality properties in exclusive locations. It is because of this high demand from foreign buyers that Mallorca has registered a double digit price increase in the first half of the year. The areas that attracted greater interest are on the southwest of the island, where prices have soared by 50%, followed by Palma and Son Vida, where the price increases were at around 10%.
Spain boosts the company's results
Worldwide, the Engel & Völkers Group increased its revenues by 26.2% to 229.4 million euros, which is a big jump from the previous year's 181.7 million figure. "International demand for premium properties has once again recorded a strong increase in both segments of first and second homes," said Christian Völkers, founder and co-president of Engel & Völkers AG. "Our strong expansion strategy that has been mainly focused on Europe and the United States, has had a very positive impact on company results," he adds.
This is precisely a good situation to be in the housing market. What's more, the strong presence of Engel & Völkers in European and American markets has enabled the group to set an ambitious goal for the end of the year when Christian Völkers expects to have "recruited 1,300 real estate consultants". In Spain alone, there will be 9 more offices opening in the second half of the year.
The news about the results in Spain had plenty repercussion on online press: