In a moment where the sale of flats has started to take off in Spain, After the pandemic, setting up a profitable real estate is a business with good prospects. According to the newspaper El Español, in our country there would be some 55,000 real estate agencies (data from 2020), an indication that the market is moving and reinventing itself, thanks to digitization.
Start a profitable business in real estate
Undertaking is an exciting adventure, which starts with many illusions and objectives, but it is also exposed to problems and challenges. In the case of the real estate sector, although the times we live in favor the creation of this type of company, it is important to know how to establish a strategy to ensure success in your effort and in the investment that you are going to have to make. When taking the first steps, we advise you the following:
- Define what your business model will be. To do this, you will have to do a deep analysis, not only of how your sector is doing, but what your main value is, what your product is like and who your main customers are going to be. All this will make up the identity of your business, and will be the key on which to establish a strategy and that will serve as a guide on your way to success.
- Do a market study. This will help you get to know your competition better and establish a differentiating strategy. You will also know the probabilities of success or failure of a real estate business in a certain area, or how your target audience tends to behave. Knowing the consumer’s profile is very important because you can adapt services and products to that behavior. Finally, in the market study of a real estate it is important to include the legislation of the sector in the area where you are going to work.
- Carry out a feasibility study to know the profitability of your business. In this study you will have to include, among other things, the expenses that you will have in the short and medium term, the income that you hope to obtain in a period of time (for example, each month) and see if the difference meets your expectations. In this way you reduce the risks involved in investing in a new business.
- Learn from others. Training, reading books from real estate gurus, listening to the successes and failures of people with experience in the sector will draw you the approximate context you will face. Each person has a story and faces it differently, but there is no doubt that we all follow a common denominator, especially when it comes to entrepreneurship.
- Stick to what the law says. The real estate sector is highly regulated with national, regional and even municipal regulations. For a real estate it is extremely important to know the law, and this is extensible for you as an entrepreneur and for the people you hire. Clients will ask you for advice and, in addition to that, the homes you work with have to have everything in order to make a legal sale or rental.
Definitely, if you are an entrepreneur and want to try your luck in the real estate world, this is the favorable situation in Spain. To reduce the risk to the maximum and recover your investment as soon as possible, you will have to stick to a plan in which certain aspects will be similar to the creation of other types of companies (such as strategy, market study, etc.) and others will be vital in businesses in this sector, such as the large amount of regulation that exists and the importance of complying with it.