Engel & Völkers sets new sales record in 2022

In 2022 Engel & Völkers has grown by 8% in Spain, even in spite of the economic and political challenges of the past year, reaching a brokerage volume of 3.402 million euros.

"The war in Ukraine and its impact on the price of raw materials, the energy crisis, the increase in inflation and interest rates have caused a certain slowdown in some transactions," says Juan-Galo Macià, president of Engel & Völkers in Spain, Portugal and Andorra. But despite the uncertainty, "the real estate sector has maintained its status as a safe haven among investors," Macià stresses.

In total, Engel & Völkers has managed 8.495 transactions in Spain, of which 4.404 were for sale and purchase and 4.091 for rental. It is worth highlighting the 30% growth recorded in the rental segment, where it achieved a brokerage volume of 122,6 million euros, mainly driven by the increase in the price of transactions to an average cost of 2.497 euros. The average price of sales transactions also rose, albeit by a smaller amount (+6.3%), to 744.687 euros.

The average price of sales transactions managed by Engel & Völkers in Spain has risen by 6% to 744,687 euros.

"The year 2022 has marked a turning point between the first and second half of the year in an atypical year in which the real estate sector has not been able to remain unaffected by global uncertainty," explains Macià. "After some complicated years conditioned by the pandemic, in 2022 we have been able to overcome again", confirms the president of Engel & Völkers for Spain, Portugal and Andorra. In a market in constant transformation, explains Macià, "we have been able to continue growing in number of operations, transactional volume and brand expansion with the opening of the Metropolitan Market Center in Seville as our main stronghold".

Buyers focus on second homes

Although the average price has risen in both buy-to-let and rental, price adjustments are expected in 2023 in mid-tier locations, with stability in premium housing where the strong demand seen in 2022 will be maintained. In the upper end of the market, rising interest rates have less impact on market activity, as many customers do not need to take out mortgages to finance their purchases. However, in some cases there is greater price sensitivity, resulting in longer marketing periods.

In mid-market locations, demand has declined in recent months due to increased barriers to applying for financing. Banks are much more cautious when valuing properties and demand stricter requirements on the creditworthiness of clients. On top of this, rising interest rates are making it increasingly difficult for a growing number of people to finance an investment in a home. As a result, prices have fallen slightly in some markets.

"We see this slight fall as an adjustment after the exceptionally high price rises of recent years. From 2020 to early 2022, there was a real boom in the housing market, and we knew that this could not last forever. The price trend is stabilising, but we do not expect sharp falls in the future," adds Juan-Galo Macià.

Engel & Völkers maintains its expansion plans for 2023 under the group's successful business model. Based on the solid pillars of the franchise business together with the Market Center concept and the company's own operations, Engel & Völkers expects to continue to grow and attract new external partners. "We are always open to enthusiastic people joining us, with the aim of further strengthening our market leadership and writing the next chapter in the company's success story," concludes Juan-Galo Macià.