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Engel & Völkers Emerges From Crisis Year 2009 In Good Stead
Engel & Völkers press release regarding the commision revenues of 2009
By: Engel & Völkers Thailand
• Group commission revenues total 137.1 million euros
• Record year for residential property shops in domestic market
• Strong international expansion continues unabated
Hamburg, 28 January 2010. The Engel & Völkers Group, with headquarters based in Hamburg, Germany, has remained largely unaffected by the broader impact of the economic crisis in 2009. Total brand revenues generated by the Group fell by just 6.4 percent to 137.1 million euros (previous year: 146.5 million euros). It was the record year for residential property shops in the Group’s domestic market Germany that contributed most considerably to this performance. “Consistent implementation of our expansion strategy places us in a strong position for the future,” said Christian Völkers, CEO of Engel & Völkers.
Residential division in Germany upholds annual result
The development of the Group’s residential division has impacted significantly on the annual result for the 2009 financial year. Engel & Völkers Residential GmbH recorded a 19.6 percent increase in brand revenues to 64.1 million euros (previous year: 53.6 million euros), marking the best annual financial result ever for the company. The overall turnover generated by residential property shops based in the 31 other countries worldwide fell in 2009 by 26.3 percent though, to 36.7 million euros (previous year: 49.8 million euros). This decline is due not least to the economic downturn, which led to a strong decline in sales in Spain, South Africa and Dubai. After a mid-year low however, the second half of 2009 was characterised by a gradual upward trend that bodes well for the future.
Decline in growth on the commercial investment and rental market
Weak levels of growth on the investment and rental markets meant that the commercial real estate division suffered a loss in revenues of 29 percent, with an annual turnover totalling 30.6 million euros (previous year: 43.1 million euros). “We expect a stable trend on the German market for the commercial real estate division in 2010, and increases in revenues from abroad – taking into account the fact that a number of new international offices have opened over the past 12 months,” Mr. Völkers forecasts.
Expansion despite harsh economic climate
“Our employees’ high degree of professionalism and the enduring strength of our brand pay dividends during periods of crisis,” Mr. Völkers continued. This trust is clearly tangible in light of the growing demand for Engel & Völkers licences acquired by partners to operate residential property shops and commercial offices. When compared with the previous financial year, 2009 saw an approximately 30% increase over the previous financial year with a total of 135 licences sold. “Many entrepreneurs seek a path to success within a strong network, particularly during a crisis such as the current one where markets are under strain,” said Christian Völkers, accounting for this growth.
Development of markets in the USA, Russia, India and China
In 2009, around 3,400 Group employees based in more than 400 residential property shops and commercial offices worldwide brokered real estate with a total transaction value of just under 5 billion euros. “Engel & Völkers has made a promising start to the new year,” Mr. Völkers reports. “Alongside further development of our existing key markets, we plan to focus our expansion efforts this year in the USA.” The medium-term growth strategy of Engel & Völkers also envisages the entry and expansion of its network in Russia, India and China. All in all, the CEO’s forecast for 2010 is a thoroughly positive one: “Growing levels of demand in many foreign markets are looking very promising. This aspect, coupled with a consistently good transaction volume in residential property in Germany, will mean that 2010 will bring renewed growth for the Engel & Völkers Group as a whole.”
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About Engel & Völkers:
Engel & Völkers is one of the world’s leading service companies specialised in the sale and leasehold of pre-mium residential property, commercial real estate and yachts. More than 390 residential property shops specialised in high-class real estate and 38 commercial offices brokering office, retail and industrial space, in-vestment properties, residential and commercial real estate and property portfolios offer both private and institutional clients a professionally tailored range of services. Engel & Völkers is currently operational in 32 countries on four continents.