The recovery of housing drives the creation of real estate throughout Europe

The real estate market continues its resurgence in Spain, driven by the recovery in housing prices and the greater demand for rent and purchase. In 2017, 10,627 companies were opened in the real estate, financial and insurance branches, 29.7% more than the previous year. In January alone, the balance was 1,044 openings, compared to 706 in the same month of 2017. Employment data also confirm the trend: according to the Active Population Survey (EPA), employment in the sector exceeds 2008 levels In many neighborhoods, real estate is beginning to resurface in the streets where the blinds were lowered with the bursting of the bubble.

The phenomenon of the opening of real estate agencies gained strength last year, and the acceleration continues at the beginning of 2018. According to the National Statistics Institute (INE), 1,044 real estate, financial and insurance companies were created in January alone, which represents a year-on-year growth of 47.9%. In number of new open establishments, the sector is only behind commerce.

"Every 50 meters there is a real estate agency," says a worker from the company that buys, sells and rents flats, Tengo tu casa, on Calle de Alcalá in Madrid. From the door of this store you can see three other establishments of the same business. This group has five branches in the capital, and opened the one in Alcalá less than a year ago. "We are not worried about the competition because we are a group, but I understand that other real estate agencies notice a drop in customers," explains one of the ten commercial staff.

Fabián Cabellos, a franchisee of Vivienda Madrid for a year and a half, is also located on Calle de Alcalá, a few numbers above. "I worked with this real estate company for five years and now I have decided to open a franchise of the same brand myself. Many of my colleagues have done the same, last year four new offices were opened throughout Madrid," he recalls. "The creation of new real estate companies is driven by the recovery of the market, the price of housing and the increase in the number of sales transactions", explains Lázaro Cubero, director of the Department of Analysis and Reports of Tecnocasa. In 2017, the highest rise in housing prices since before the bubble burst was recorded, with an average of 6.2%, according to INE data. As for rent, it closed 2017 with the highest increase in 11 years, as rents increased by 8.9% on average.