The lack of confidence in the real estate sector data in Spain is due to errors in house price data and home sales published by some real estate portals. In the previous real estate and financial crisis, buying and selling agencies and professionals already detected a lack of correlation between data, published prices, and reality. While the first ones manifested the stoppage of sales, the portals and the constructors denied these facts.
Practices that alter house prices
Some practices not corrected by real estate agencies and portals that reduce the reliability of the data and alter house prices are:
a) Mixing types of business in the same analysis
Before the crisis of 2008, almost 100% of housing rentals were long-term rentals with no furniture, but now owners and investors are oriented towards «seasonal housing rentals» (mainly 1–12 month contracts) and «tourist housing rentals» (days or weeks contracts). These types of rentals are also advertised on the same portals, but without differentiating their format. The last two include furniture, and the first ones usually do not. The price-offer difference is enormous.
b) Mixing different housing business formats that relate to the same type of business
“Homes with cleaning service and supplies included” are mixed in with the same data as “homes without services or supplies not included in the price.” The difference between the two can exceed 500 euros per month, but they are all mixed.
c) Mix of different typologies within the same business format
Furnished dwellings are mixed with unfurnished ones, as stated before, increasing the value of the latter.
Questionable Ethical Practices Contributing to Rising Prices
The combination of the above actions contributes to the artificial rise in prices, taking advantage of the good work of the owners who put their homes in optimal condition.
a) Advertising the same adds up several times
There are agencies or investors who advertise the same home several times. You can also find many ads for different rental companies and even up to 20 ads sometimes. It obviously modifies the market price in the area.
b) coexistence of different interests in the same group of people.
When the same people’s informative interests and economic interests are to inform but also to be patrimonialists, then the information is not credible as its intention might be to increase rental ad adquisition prices. In consequence of these and other practices, the data and the perception of the market are seriously altered by artificially altering the volume of housing that is believed to be in the market and its market price.
c) Portals and real estate were investigated by the CNMC
The National Commission of Markets and Competition of Spain opened a file against seven companies: Idealista, Look & Find, Remax (CDC Real Estate Franchisee), Witei Solutions, Inmovilla Applications, Anaconda Services and Real Estate Technologies, and Multiple Service of Exclusive Real Estate SL.
DFLAT’s business is rental housing only.
We market our stock through B2C, B2B channels, moving agencies, relocation, travel, and our own channels with apartment listings for companies and students. We have apartments by days next to the Castellana behind the Intercontinental Hotel and near the Miguel Angel Hotel.
You can contact us if you are an investor or owner in search of a property manager in Madrid.