Australia-based proptech company PropHero, is expanding rapidly in Spain, which is set to become the company’s biggest market this year, according to co-founder Pablo Gil (LinkedIn profile).
Eschewing Madrid and Barcelona, PropHero helps users find investment properties in smaller Spanish cities, such as Valencia and Zaragoza, which it maintains have significant growth potential.
It then helps them to buy the property and manages its renovation or redecoration, furnishing and letting, helping the new owner with tenant selection. PropHero also provides a coaching app for property investors.
“In Spain, we are growing at 10%-20% a month this year. If this trend continues, which it appears likely to, we will be able to close [2023] with total revenue of €10.0 million ($10.7 million U.S.), with €6.0 million ($6.4 million) of this coming from the Spanish market,” company co-founder Pablo Gil told newspaper El País.
“This combination of factors allows us to generate an average return of 7.4% — well above the average for the sector.”
Gil added that PropHero is closing an average of 30 transactions a month in Spain worth a total of more than €2.5 million, with an average transaction value of around €85,000. “30% of our clients repeat in less than six months,” he said.
Gil also revealed that the company had begun to operate on the Indonesian island of Bali, noting that this location was attracting significant interest from Spanish investors.