Engel & Völkers Q1 12.7% revenue rise
The Engel & Völkers Group has seen a continuous upward trend this year with sustained growth in all business divisions. The group has seen an increase in commission revenue during the first three months over the same period in the previous year by 12.7 percent to around 54.0 million euros (Q1 2012: 47.9 million euros).
The Engel & Völkers Group saw a 12.7 percent increase in commission revenue, with the strongest upturn coming from the commercial division.
This represents the best first quarter achieved by the Group in its history spanning over 35 years. The residential property shops operating in international markets underwent strong growth, increasing their revenues from commission by 14.9 percent to 17.9 million euros (Q1 2012: 15.6 million euros). The residential property shops in Germany grew turnover by 6.5 percent to almost 23.0 million euros (Q1 2012: 21.6 million euros). However, the group underwent the strongest upturn in the commercial division. With a turnover increase of 22 percent to 13.1 million euros (Q1 2012: 10.7 million euros), the business division achieved a new record result.
“We are extremely satisfied with the results for the first quarter of the 2013 financial year, and we find ourselves on the right course,” says Christian Völkers, CEO of Engel & Völkers AG. In their international markets, the high demand for residential properties had a positive effect on revenue figures and continues to exceed supply in prime locations in world-class cities as well as sought-after second home markets.
In Germany too, the market strength is increasing as a result of the positive overall economic climate on the residential property market. The high level of demand from investors for multi-purpose apartment and office buildings in medium-sized cities is also a positive trend.
Engel & Völkers is expecting to see a strong level of continued growth over the remainder of 2013. Völkers says they will continue to enforce their expansion plans during this financial year and will be opening new shops and offices in strategically important growth markets. “The strength of the brand and an increase in brand presence will continue to form the focus of our efforts.”
Craig Hutchison CEO of Engel & Völkers Southern Africa added that the growth has spread over the entire group as Engel & Völkers Southern Africa has also seen some of its best quarters so far. “The real estate market remains slow but the growth within the brand has been phenomenal. We have seen a clear rise in sales and activity since December last year.” Internationally, he says the second home market has increased as investors look to buy property as a safe haven for their investments, and this is evident in the luxury second home market in South Africa, as it has experienced an increase over the last few months.