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Housing recovery drives the creation of real estate

In January 2018, 1,044 companies opened in the field of real estate, financial and insurance, compared to 706 of the same month of 2017

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Housing recovery drives the creation of real estate

The phenomenon of opening of real estate took force last year, and accelerated continues at beginning of 2018. According to National Institute of Statistics (INE), only in January 1,044 real estate, financial and insurance companies were created, which implies an annual growth of 47.9%. In number of new open establishments, sector is only behind trade.

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"Every 50 meters re is a real estate," says a worker in company buying, selling and renting flats I have your house, in Calle de Alcalá de Madrid. From door of this shop you can see three or establishments of same business. This group has five branches in capital, and opened Alcalá less than a year ago. "We are not concerned about competition because we are a group, but I understand that or real estate companies notice a drop in customers," explains one of ten commercials in staff.

Fabián Cabello, Madrid housing franchise for a year and a half, is also located in Calle de Alcalá, a few numbers above. "I worked with this realtor for five years and now I have decided to open a franchise of same brand. Many of my colleagues have done same, last year four new offices were opened in all of Madrid, "he recalls. "The creation of new real estate agents is driven by recovery of market, price of housing and increase in number of sales operations," explains Lázaro Cubero, director of Tecnocasa's analysis and reporting department. In 2017, highest rise in price of housing was recorded before bubble puncture, with an average of 6.2%, according to INE data. As for rent, it closed 2017 with largest increase in 11 years by revaluing rents by 8.9% average.

Cubero says that re is a "favorable environment", so that professionals who left sector in crisis are returning now. "Until 2012 many companies have been destroyed that have been operating for a long time and this has caused a service deficit that is recovering with this creation of real estate agents," he says. Thus, last year in Spain re was according to INE a total of 168,540 companies dedicated only to real estate activities, 5.9% more than 159,212 of 2016. In addition, se businesses had 184,886 establishments compared to 174,227 of previous year, which represents a rise of 6.1%.

Fernando Encinar, head of studies of idealist real estate portal, says that now "re is more professionalism" in real estate sector. "Many of workers now have knowledge of sector and decide to open ir own premises and hire employees." Thus, this growth in number of companies is also accompanied by a rise in employment. According to active Population Survey (EPA), 2017 finished with 130,900 people working in real estate activities, surpassing levels of 2008, year in which crisis erupted and when employing 113.00 professionals.

The professionals of sector commented that y noticed entry of new actors in business and that competition makes that owners of flats, that are ones that have product, are more demanding and compare more between real estate ones. "We now have five homes in portfolio, as much as we get to ten, and we feel that re is much more demand than offer," explains Fabián Cabello. According to data from several real estate agencies, when y post an ad to rent a flat, y find a tenant in less than a week.

For Encinar, this growth in creation of real estate does not represent a bubble of sector like before economic crisis. "The market is self and what many call bubble is a more accelerated recovery of a sector that suffered a lot during crisis," he says.

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