…fastest expanding property franchise network in Europe
Engel & Völkers, the leading real estate agency specialised in the sale of high-class residential and commercial properties in the most exclusive locations aims to grab a 10% share of the Cyprus property market in the next 3-5 years after its franchise network is in place, said Sven Odia, Managing Partner of the Group.
Odia was in Cyprus last week to sign the Engel & Völkers Master Licensing Franchise for Greece with Engel & Völkers (Greece & Cyprus) Ltd. Managing Director, Andreas Matsas who also hold the Master Licensing franchise for Cyprus.
“We are absolutely thrilled at the way our Cyprus partners are handling the development of our network in Cyprus, which is why we decided to trust them with our expansion into Greece,” said Odia, who is confident that the Engel & Völkers Cyprus and Greece partner will record the same success and market penetration that Engel & Völkers name has become associated with.
Matsas told the Financial Mirror during the interview that Engel & Völkers plans to open 15 Cyprus locations while in Greece, the business plan allows for the opening of 60-80 locations within the next couple of years.
German discipline
Engel & Völkers is an international network of property agents present in 23 countries spanning four continents, but it all started in Germany, where it is already a household name associated with quality service for quality property anywhere in the world.
Odia who has been spearheading the international expansion explained to the Financial Mirror that at first, Engel & Völkers was expanding to countries usually visited by Germans mostly for holiday, such as Spain, France and Italy, but then went on a global expansion after the phenomenal success that it recorded in every country where it established a presence.
One of the key criteria of success is that Engel & Völkers insists on quality of service, which can only come from intensive training of its partners.
“The fact that Engel & Völkers started from Germany and this is where our Head Quarters are based (Hamburg), may explain our insisting to fine tune the last details on how our people, irrespective of where they are based, Hamburg or Hong Kong, meet clients and address their needs, both for buying or selling property anywhere in the world,” said Odia.
Quality service
The Engel & Völkers brand is associated with superior property at the right location with the buyer knowing that if it is listed by Engel & Völkers , then it also meets certain criteria such as having all documentation and licensing in place.
The property business is all about location and price but also trust in the people selling it, which is why every partner (licensee) undergoes a vigorous training course in Hamburg before allowed to set up a shop.
The partner also needs to adopt and implement the Engel & Völkers shop design so that it clearly identifies with the Group corporate design and layout.
Growing network
You may have the right property at the right price, but without quality people looking at it, your efforts are bound to fail. Enter Engel & Völkers and its international network.
According to Odia, in order to sell a property, the seller wants to achieve the highest price and sell it quickly. Two issues addressed by Engel & Völkers on a daily basis, which based on its extensive presence in 23 countries spanning four continents is made possible.
“We have signed 284 Sub-Licensing agreements and 25 Master Licensing deals globally. By the end of 2006, we shall have 320 sub-license partners around the globe with the number seen rising to 500 by the end of 2007.”
“We are opening a new shop every 100 hours, or every 4-5 days, mostly in Europe, but also in Asia Pacific and soon expanding into the US,” said Odia.
Feed to Cyprus
Odia sees many similarities between the Cyprus and Greece markets with other countries where Engel & Völkers is already present, such as Spain, Italy and South Africa to name a few.
Who buys quality property in Cyprus? Foreigners, mostly from the UK and Russia. If people think the market from the UK and Russia is becoming saturated, then you may need to hear Odia, who says that with 150 shops in Europe alone – mostly in Germany, but also France, Scandinavian countries and others – Engel & Völkers is strategically placed to open a new market for Cyprus property.
It is not only Europe from where Engel & Völkers will be feeding clients, but also from its global network, plus its 30-year knowhow and experience and 284 shops, where the property to be sold, say in Cyprus, will be displayed.
Engel & Völkers also has its own high quality magazine with a print run in excess of 100.000 quarterly where quality locations are featured and copies distributed among all the international and local partners.
The beginning of 2007 will also see a revamped web site which will promote all the partners with most of the property on offer will be digitally displayed on-line.
Added business
While each Engel & Völkers shop manager is responsible for his/her area to generate business, the partners also share in the commission income generated from business they feed to their partners located in other countries.
Citing an example, Odia said a prospective Cyprus partner may introduce a client from Cyprus interested to purchase property in London, Paris, Hamburg or as many Cypriots prefer these days in central Europe or the Balkans. Once the deal is closed through the resident Engel & Völkers partner, then the Cyprus partner will receive a share of the commission generated on the sale.
“This explains why the cross-feeding of clients from one location to another is working in such a fine and efficient way, as all partners benefit from the sharing of the Engel & Völkers knowhow, experience and growing network,” said Odia.
The strategy helps explain why last year, Engel & Völkers became the largest property company in Europe in terms of turnover and why Engel & Völkers is confident that it will be able to reach its stated goal of grabbing a 10% of the Cyprus property market share within the next 3-5 years.
“What is happening now in South Africa, many European countries and before that in North America where the networking groups operating on the Engel & Völkers model have been gaining market share will soon also extend to Cyprus and Greece,” says a confident Odia.
Huge interest
The Engel & Völkers brand is so much trusted and known in countries where it is active that when word gets out that a new location will be opened, there is usually an avalanche of applications.
Odia revealed that last year when Engel & Völkers issued a call for new license opening in Germany, it received 1400 applications of which it chose only 30.
“We go after the right people who need to meet our strict criteria of becoming a partner.”
Engel & Völkers does not simply give its license to anybody who walks in and pays the franchise fee. They need to prove that they will adopt and implement the Engel & Völkers work ethics and abide by its strict quality regulations.
As for Cyprus, the Engel & Völkers Greece and Cyprus Managing Director Andreas Matsas said there is growing interest as Cypriots discover what the Engel & Völkers license means.
Matsas revealed that among the applicants now being scrutinised with the guidance of Engel & Völkers Head Quarters based in Hamburg, there are two Germans living in Paphos, a Cypriot living in Switzerland and a German from Germany who wish to relocate to Cyprus and become Engel & Völkers partners.
“Those who know about the Engel & Völkers concept, associate the Engel & Völkers brand with a successful business since they know that it offers a high return reward on very low risk capital invested. They are the first to jump and apply in order to clinch such a lucrative license,” said Matsas.
