REMAX Portugal buys REMAX France. With 345 branches and 8,202 agents in Portugal (February 2020), REMAX just bought the franchising network of the brand in France , which is much smaller: 52 franchisees.
How big is REMAX Portugal?
First, you should know that REMAX Portugal is one of the two leading real estate agencies in Portugal, with ERA. Indeed, ERA has 200 offices and 2,000 agents, and 65,000 properties in portfolio. Therefore it is quite similar to REMAX and its 50,000 properties in portfolio.
Also, while the leading property portals such as Idealista.pt and Imovirtual.com get approximately 4 million visitors per month on their respective websites, REMAX gets close to 2 million visitors per month! What’s more, according to Similarweb, REMAX.pt is more visited than CasaSapo.pt, another leading property portal in Portugal.
3.3 billion euros in revenues
Remax Portugal closed 2018 with a volume of transactions of 3.3 billion euros. While the brand made 62,287 transactions, 79% of which were acquisitions/sales.
Unless my maths is incorrect, this indicates that REMAX sold 49,207 properties at an average price of 67,000 euros per transaction. However that’s not coherent with the fact that the average transaction in Portugal is at 134,000 euros. So, either they sold many parking lots or I need to buy a new calculator.
Finally, to put it into perspective, 180,000 properties were sold in Portugal in 2018.
What will REMAX do in France?
According to an official communication, “the strategy outlined is to grow to 80 agencies in and around Paris”, adding that it wants to replicate its business model that has been successful in Portugal, in France.
Why does REMAX Portugal buy REMAX France?
REMAX Portugal buys REMAX France, alright. But why? I can see two reasons to the acquisition.
Reason #1: France’s real estate market is 8 times bigger than Portugal
First, the President of REMAX Portugal, Manuel Alvarez, indicated that REMAX wishes to “replicate in France the business model that has been an example of success and continuous growth in Portugal.” However that’s not the only logical reason for an expansion in France specifically…
Indeed, Portugal is a relatively small real estate market with:
- 180,000 transactions per year
- Average transaction price at 134,000 euros
- 24 billion euros worth of transactions
While in comparison, France’s real estate market is 8 times bigger:
- 1 million transactions per year (x5,55)
- Average transaction price: no official data, however can be estimated above 200,000 euros (x1.49)
- 200 billion euros worth of transactions (x8.33)
Reason #2: French buyers in Portugal
Did you know that France has been the #1 nationality of foreign buyers in Portugal in the last 5 years? Indeed, French buyers have always been in the top 3 foreign buyers in Portugal since 2012.
So, REMAX Portugal entering France is also a way for them to developer further their capacity to increase their market share of a 1.1 billion euros market: the French buyers in Portugal.
Best of luck to REMAX in their French expansion!
Source: Idealista.pt, NoticiasOMinuto, SeLoger, CBanque