A Year in Review: BidX1 announces results from its first year in Spain
L-R: Javier de Pablo, Head of Property & Daniela Marchesano, Head of Operations, BidX1 Spain
BidX1, the digital property investment platform that specialises in online property transactions, has sold over 200 properties since launching in Spain in October 2019, raising over €34m.
In the past year, the firm has held four virtual auctions, attracting 500+ bidders, all of whom must register in advance and provide a deposit in order to take part, a clear reflection of the appetite for a more modern approach to property transactions.
BidX1's Spanish listings have drawn viewers from over 170 countries and the company expects to list over 400 Spanish properties by the end of the year, with increasingly large catalogues and a higher proportion of high-value investments offered.
Javier de Pablo, Head of Property at BidX1 Spain, said: “Despite the circumstances, there is liquidity in the market and strong investor demand for Spanish property, both nationally and internationally."
Overall, BidX1 is expanding rapidly, with plans to be live in Greece and Portugal in early 2021. At group-level, the firm has seen revenue increase by 50 per cent year-on-year, notwithstanding the effects of the pandemic, and BidX1 intends to increase headcount across all markets by 25% in the next 12 months.
Thanks to the simplicity of the process and the ability to complete the full transaction online, BidX1's Spanish auctions have attracted bidders ranging from 19 to 82 years old, but the most common profile among Spanish bidders are people between 30 and 50 years of age who are purchasing their first home. However, BidX1 have noted a growing interest from investors too, a cohort which already represents 20% of buyers.
The majority of BidX1's sales in Spain have been residential, totalling more than €27m, while the remaining €7m have been commercial assets. The company has closed sales in more than 25 Spanish provinces to date, with 70% of these sales concentrated in Madrid, Barcelona, Valencia, Zaragoza, Malaga and Alicante.
The firm was able to continue trading during the most restrictive period of the lockdown in Spain, thanks to its innovative, tech-focused approach to property transactions. The launch of the BidX1 App earlier this year, which allows the entire process to be completed quickly and easily on mobile devices, has also facilitated investors who value convenience and efficiency.
Daniela Marchesano, Head of Operations at BidX1 Spain, said: “Without doubt, the arrival of Covid-19 has accelerated the transition to purely digital processes in the real estate sector. In our case, thanks to our business model, we adapted quickly to the new circumstances."
BidX1's digital platform, which facilitates end-to-end online transactions, means that buyers have all the most crucial information at their fingertips, including access to the legal documents for each property. This allows them to complete due diligence prior to making an offer, making the process more efficient, but also more transparent.
An innovative model in the Spanish real estate sector
The BidX1 model, novel and disruptive in Spain, is simple. In order to purchase a property, interested parties must register in advance, providing proof of identity and proof of address, as well as a deposit that is fully refunded if they are not the successful bidder on the day of the sale.
The model brings greater transparency to the sale process; all of the information relating to a property is available on the platform and, on the day of the sale, all bids are logged and displayed in real-time. The process is also more efficient than traditional methods, reducing the sale cycle from the current average of 6-9 months down to just 10 weeks.
BidX1's approach has already seen success in markets like Ireland, the UK, South Africa and Cyprus, where the company has sold more than 6,000 properties through its digital platform.
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