The Business Year

Pedro Lancastre

CEO, JLL Portugal

Juan-Galo Macií 

CEO, Engel & Völkers Spain, Portugal, and Andorra

With such a diverse group of investors in the local real estate sector, these companies help interested parties navigate the different opportunities offered in the country.

Can you elaborate on the company’s development in the last few years?

PEDRO LANCASTRE We had a great 2021; in terms of revenue, it was our best year ever. Despite the pandemic and the uncertainty, we are going through, our gross revenue was 5% above 2019. We are continuing to grow, and it has been 25 years of great successes. Today, we have 363 people working in 360 degrees in the real estate industry, from commercial real estate to residential. We started by acquiring a small company that was 100% dedicated to retail, and we grew naturally, going from retail to office to the industrial sector. We are a one-stop shop within the industry. We cover all areas of real estate, including designing interiors from retail and offices to malls, hotels and cinemas. Over the years, we have successfully expanded our operations to the hospitality and hotel industry as well. We have a dedicated team for hotels, not only in Portugal but also around the world, and we have participated in transactions to help operators find spaces or redefine, reshape, or reconstruct their hotels.

JUAN-GALO MACIÀ For over 40 years now, Engel & Völkers has specialized in the brokerage of premium residential property, commercial real estate, yachts, and aircraft. As a leading global service company, we currently operate in over 900 locations in more than 30 countries spanning five continents. Currently we have around 16,000 people operating under the Engel & Völkers brand worldwide, and one of our expansion goals is to reach 20,000 in the next few years. Our proven business model, which consists of the well-established pillars of the market center concept and the franchise business, provides the optimal leverage to further expand our business. 2021 was a historic year, as the company exceeded EUR1,000 million in group fee income. We were able to improve and overcome barriers. With regard to Portugal, we had the highest turnover in history, with more than EUR168 million in brokerage volume of premium properties. Engel & Völkers firmly believes in the potential of the Portuguese market and has been investing significantly in the training of consultants, technological development, and the growth of the franchise network in the premium segment, now having national coverage.

How do you shape your competitive advantages?

PL We know what developers are looking for, and we help them buy the projects and define the product. We know what market to approach. We know where demand comes from and what the market is seeking. This is a great competitive advantage. We are part of a multinational company that is present in more than 80 countries. We can predict trends and anticipate what the world is bringing to a small country such as Portugal. We are a commercial real estate company, though we are also present in the residential space, and today there are no investors looking at commercial spaces that does not also want to invest in residential.

J-GM Engel & Völkers has been in the market for more than 40 years and has built a strong brand and global network which is one of the main competitive advantages we have. This allows us to take advantage of the synergies within the company to be able to provide the best service to our most demanding customers and maintain our high quality standards that position us as a brand of recognized prestige. Now with the arrival of the Permira fund, and its ambitious growth objectives, we are going to take an even greater technological leap in order to continue to always be one step ahead.

What specific segment drives the growth of the company?

PL In general, all segments are growing equally. All sectors in the occupancy, investment, residential grew significantly in the last five years. In our case, in 2021 residential grew more. Residential has been constantly growing for the past four to five years, and in 2022 we still see great potential to continue to grow further here. We opened shops in 2021 in several areas, including Cascais, Algarve, and Porto. Our geographical expansion is aligned with the business volume of the company.

What consolidation and expansion plans does the company have?

J-GM Engel & Völkers is strongly positioned around the globe to continue its course of expansion in 2022: The Group’s proven business model, which consists of the well-established pillars of the Market Center concept and the franchise business, will be expanded further. The growing number of experts working around the world under the Engel & Völkers brand is reflective of the attractiveness of the company. In 2021, more than 90 new shops opened worldwide.

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