Madrid-based property developer Gestilar has launched an IBuying service. It is hoping that Homes by Gestilar will sell an average of 100 homes a month during 2023, bringing in annual revenue of around €350 million ($348 million U.S.). As would be expected, it is starting out on a much smaller scale — turning over about ten units a month.

Founded in 2009, Gestilar has built a total of around 2,800 housing units to date, many of which are “build to rent.” Apart from its headquarters in Madrid, the company has offices in Galicia, Catalonia, the Balearic Islands and Lisbon.

According to Gestilar, it has created an algorithm that utilizes 90 data points to indicate where and at what price to buy and sell. The company has committed between €80 million and €100 million to Homes by Gestilar, including bank financing. The new division will initially have a team of about 50.

In an interview with newspaper Expansion, Javier García Valcarcel, founder and chairman of Gestilar (LinkedIn profile), said that the sale of second-hand housing had great potential for companies that were able to combine innovative technological solutions with knowledge of the sector. He noted that although buying and selling second-hand housing had lower margins than new build, the risk was also lower, as the term of investment was much shorter.

García Valcarcel added that the business could eventually be expanded to Portugal, where Gestilar already operates in Lisbon and Porto. “The business is scalable and the more volume the better, but first we want to do well here [in Spain],” he commented.

The article in Expansion also indicated that Homes by Gestilar could receive outside investment and eventually be spun off from its parent company.

IBuying is an increasingly crowded field in Spain, with Clikalia, Casavo, Tiko and Kodit the biggest names.

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