How many properties would you say are sold in Spain every year? At present date, the figure amounts to 500,000, of which 80,000 are new constructions. In charge of selling these houses is a total of 20,000 real estate agencies spread throughout the country. If a simple division is made, it turns out that the average number of property annual sales per agency is 25, a figure that doesn’t add up, leading to an alarmingly unbalanced market sector.
The proptech industry in Spain has tripled in the course of one year, going from 53, to 203 companies in March 2018. These solutions are emerging as the convergence point between real estate and technology, and one of these projects is swiftly gaining a spot among Spain’s most important players: the year-and-a-half old platform called Housfy.
Housfy is a Spanish proptech platform that sells properties online excluding agency fees, which can currently cost up to €15,000 per sale. The company offers the same services as a traditional real estate agency, but requiring one sole payment of €3,600 that must be effectuated once the sale has successfully concluded.
The main difference between traditional agencies and Housfy, which explains part of the reduced cost of the service, is that Housfy prepares a schedule for the visits, but the one who conducts them is the actual owner. The company claims that the owner will be able to undertake this task more accurately, as he or she is the one who can perfectly illustrate the characteristics of both property and the neighborhood where it’s located.
In Spain, 95% of traditional real estate agencies sell 20 houses per year, while only the four or five largest agencies sell between 1,000 and 2,000 per year. Housfy is currently selling 50 per month, so it is already surpassed the majority and is selling half as much as Spain’s leaders in the real estate business, an astonishing figure given their short period of activity.
To Lisbon, France
Bosch and Mora’s startup is thriving at a 23% rate every month, reflecting in the exponential enlargement of their workforce which has grown from 5 to 38 employees. It is important to note that they all have a fixed contract and earn an average monthly salary of €2,000, a positive piece of information taking into account the fact the average in Spain is currently €1,640.
The business has developed vertiginously, increasing its revenue to €130,000 per month. Their main objective is to reach the ranks of Madrid and Barcelona’s top five real estate agencies and to keep moving forward and consolidate in Spain as they continue expanding their activity towards Spain’s 100 main cities. As Bosch explains, another essential goal is to achieve 200 property sales per month, lifting proptechs’ share in the Spanish market to 21%.
Housfy’s third investment round of €1 million is expected to be closed by the end of 2018, directed to the company’s expansion towards two new targets: Spain’s neighbor countries, Lisbon and France.
Behind the company
Housfy was founded by two Spanish entrepreneurs from Barcelona called Albert Bosch and Miquel Mora. The former was CEO and Board Member of the Catalonian digital company, Groupalia, a well known digital company that sells exclusive packages in the local, retail and travel sectors.
The latter is the founder of Catalonian real estate website, yaencontre.com where he spent 12 years. Later on, he became project leader and product owner of Afables Social and Human Services SL, a social startup that recommends home help for seniors.
The added value in which Housify is based upon had already been developed in the USA and UK, two pioneering countries in the digital startup ecosystem. Along with Spanish venture builder, Nuclio, and thanks to their extensive experience as entrepreneurs, Miquel and Albert joined forces and successfully launched Housfy in January 2017. The company has received two investment rounds, captivating the interest of renowned investors such as Dídac Lee and Ruben Ferreiro.
The proptech sector is growing exponentially as technological capabilities favour both the industry, by increasing affordability and efficiency, as well as the audience, by simplifying day to day processes.
