Real estate consultancies have seen their turnover double in recent years, in line with growth on the real estate market, which is why the number of companies that operate in this field has significantly increased.
Therefore, real estate giants such as Colliers, CB Richard Ellis, Cushman & Wakefield, Jones Lang LaSalle, DTZ, Coldwell Banker and Atisreal (the real estate arm of BNP Paribas), with global turnovers worth several hundred or even thousands of euros, are already present on the Romanian market, competing with domestic firms such as Euroest, Regatta and Neocasa, Business Construct monthly reveals in its March edition.
This year, Andrei Diaconescu, partner at Capital Partners investment firm, believes real estate consultancies' fees will reach 100m euros.
As a result, US-based CB Richard Ellis is set to seal the most important purchase on the market, also considering the fact that its fresh acquisition, Eurisko, targets revenues worth 25m euros this year, a quarter of the entire market.
Real estate consultancies' fees amounted to some 30m euros in 2006, after the market reached around 50m euros last year, and the top two players on the market, Colliers and Eurisko, together generated turnover worth over 30m euros.
Whereas the two firms' positions do not seem to be threatened by any other player for the time being, it remains to be seen how the ranking will look from the third position downwards, after several firms, such as Cushman & Wakefield, DTZ Cornerstone, and Regatta posted revenues worth 3-5m euros.
The consultancy services market is very similar to the legal services one and registers spectacular increases year after year.
Growth on the two markets is tied to the development of the overall real estate market, considering law firms have also signalled a rising weight of services provided to real estate investors in their overall revenues.
Real estate consultancies, operating at a profit margin of around 20% to 50%, have boosted their turnovers in recent years, supported by the domestic market's transformation into the Central and Eastern European attraction for real estate investors.
Romania has become a strategic country for the major providers of real estate services, because "an acquisition on the Romanian market is secure and profitable," stated Atisreal officials after taking over 80% in Cornerstone International, the former franchise of CB Richard Ellis.
Consultants are the most valuable assets of real estate services firms, which has led to significant salary hikes in this field, and also on the legal services market, as a result of the high number of real estate deals.
Real estate consultancies
Consultancies have seen their turnover double in recent years, in line with growth rate on the real estate market, a reason why the number of companies operating on the market has increased significantly
Fees are expected to reach 100m euros this year
Overall fees revolved around 30m euros in 2006 whilst the market reached around 50m euros last year, after the top 2 players on the market, Colliers and Eurisko, together generated turnover worth over 30m euros
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