Engel & Völkers sees particularly strong growth abroad
- Residential property operations grow by 21.9 percent in international markets
- Group commission revenues rise by 8.1 percent in first three quarters of 2012
Hamburg, 15 October 2012. The Engel & Völkers Group has grown particularly strongly in its international markets during the first three quarters of the 2012 financial year. The residential property shops in these markets increased their commission revenues by 21.9 percent to 56.2 million euros. The residential property shops in Germany, numbering more than 200 overall, increased their commission revenues by 4.3 percent to a new record level of 72.8 million euros. At 33.5 million euros, the Commercial division has almost matched the revenues of the same period in the previous year (-2.7 percent). Overall, the Group with more than 500 residential property shops and commercial offices in 35 countries on five continents has increased its turnover from commission earnings by 8.1 percent to 162.4 million euros.
“We are seeing strong growth in our foreign markets as we are establishing an ever-stronger position with our partners in the most sought-after regions of the world,” said Christian Völkers, CEO of Engel & Völkers AG. At the same time, the level of demand is continuing to rise significantly, especially in those desirable holiday destinations throughout the Mediterranean, as well as in the Alps and in Florida. “Holiday properties and second homes in sought-after locations around the world are becoming more expensive as a result. The turbulences on the capital markets have hardly made any impact here at all, especially in the prime locations,” Mr. Völkers added. But sought-after addresses and properties are becoming more and more scarce, especially in light of the fact that homeowners are holding on to their properties for lack of any alternatives. This is exacerbating the demand surplus still further in many markets. “We could, in Germany for example, sell a great deal more investment properties, primarily apartment buildings, if only the supply was there,” Mr. Völkers stressed.
Engel & Völkers is anticipating further growth in the fourth quarter of 2012 and in 2013. “This positive development in the markets will be sustained and our global network is set to expand even further,” Mr. Völkers said. There is considerable potential for growth in all of the world’s major cities, which will expand even more strongly in future due to rising population numbers. Engel & Völkers is in the process of planning new shops and offices with partners in these locations. The high level of demand will also drive the level of new construction, meaning that there will be a greater supply of real estate for brokerage once again in future.