International realtor to expand its footprint in SA

JOHANNESBURG – Germany-based international realtor Engel & Völkers says it’s planning to increase its footprint in South Africa, particularly in Gauteng and Cape Town. The company, which specialises in middle to high end properties, entered the South African market in 2001 with the opening of a branch in Cape Town’s Claremont suburb.

It currently has 42 branches across the country and plans on adding another 50 to its network. Engel & Völkers CEO for southern Africa, Craig Hutchison, says in Gauteng the company is setting its sights on expanding in the northern suburbs of Sandton, Hyde Park, Bryanston and Northcliff as well on the west rand near Eagle Canyon.

“We are looking for the right franchise partner to get involved,” Hutchison said. He says the residential market is improving year on year with an expected increase in transaction volumes in 2012.

“I see the volumes starting to happen now.” Hutchison has supported the views of several realtors that the gap between the buyer and the seller is narrowing with sellers more willing to reduce their asking price. “The pre-2006 house prices were high and sellers were holding onto those prices. The equilibrium is now coming with sellers being more realistic with their prices. Distressed properties are also keeping house prices down.”

In a statement from Hamburg the company said its overall commission revenues for 2011 had exceeded the €200m (R2bn) mark for the first time with a turnover of €206.4m. “This good result can be attributed to the high demand for prestigious real estate in prime locations both in German and international regions.”

The group’s CEO, Christian Völkers, commented: “High-end property in particular is becoming a preferred financial investment as a direct consequence of the uncertain financial climate and currency crisis in Europe.”

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