The lack of confidence in the real estate sector is due to errors in the data on rental prices 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 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 housing prices
Some practices not corrected by real estate agencies and portals that reduce the reliability of the data and alter housing prices are:
- Mixing types of business in the same analysis
Before the crisis of 2008, almost 100% of housing rentals were long-term-housing with no furniture, but now owners and investors are oriented towards «seasonal housing rentals» (mainly 1 up to 12 months contracts) and «tourist housing rentals» (days or weeks conntrads). These types of rentals are also advertised on the same portals but without differentiating their format. Last two include furniture and the first ones usually not. The price offer difference is enormous.
- Mix different housing business formats that belog to the same type of business
“Homes with cleaning service and supplies included” are mixed in the data together with “homes without services or supplies included in the price”. The difference between the two can exceed 500 euros per month, but they are all mixed.
- Mix 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 contribute to the artificial rise in prices, taking advantage of the good work of the owners who put their homes in optimal condition.
- Advertising the same add several times
There are agencies or investors who advertise the same home several times.
You can also find many ads coexisting of different rental companyes
We have found the same house advertised up to 10 times
- Coexistence of different interests in the same people.
Coexist in the same people informative interests and economic interests, to be a patrimonialist but the information provided is not reliable if the same person owns an important agency or a real estate portal
With these and other practices, the data and the perception of the market are seriously altered, but altering the volume of housing that is believed to be on offer and its price.
Portals and real estate 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.
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