Spain's real estate services firms close half of their offices in 2007

Spanish real estate services companies closed about half of their offices in 2007, according to data issued by Agentes de la Propriedad Inmobiliaria (API), a network of real estate agents across Spain. API estimated that around 40,000 offices closed over the last 12 months, which compares to a total of 80,000 previously active in the country.

In an interview with Spanish newspaper El Pais, Santiago Baena, head of API, said that he estimates job losses in the Spanish property sector last year to account to some 100,000. In the Madrid region the number of property offices dropped from 20,000 in the start of 2007 to some 9,000 in end-year. API said that move marked a positive adjustment to the situation of the Spanish real estate sector after years of property boom characterised by a chaotic pop-up of offices.

According to the real estate network, most of the offices were part of small local firms with no more than one of two offices. However, larger real estate groups such as Fincas Corral or Tecnocasa have also not been spared. In November, Fincas Corral, one of the leading real estate consultancy groups in Spain, said it had closed half of its offices in the country. The consultant closed 170 offices out of a total of 350, and currently has 180 offices left in the country. El Pais reported that Tecnocasa closed another 160 offices across the country in 2007, while Don Piso seems to have retained its 360 offices.