To be successful in real estate, you must always and consistently put your clients' best interests first...

“To be successful in real estate, you must always and consistently put your clients' best interests first. When you do, your personal needs will be realised beyond your greatest expectations.”

Anthony Hitt

My my, the things we have to put up with from Estate Agents, the thought that we or at least some of us might actually put our clients’ interests first……surely not..;)

I came across the above quote on reading some info on the new Engel & Volkers CEO, Anthony Hitt and to be honest, I was struck by the fact that we work in an industry, where no matter how big or small you are, these statements are in fact required and not taken as a given.

We will of course all accept that the statement applies to all industries and sectors, for without the trust and the long standing goodwill of our clients, businesses would inevitably fail.

Last April marked our 15^th anniversary trading as BMI and I found myself reminiscing and recalling through the many clients that we have worked with and assisted throughout the years; some of which were first time home owners at Harbour Views, selling their first home back in 98’ at what is now considered a ridiculous £30,000 and moving up the ladder over the years….a handful of these characters are now living in £1m properties – not bad going!

The point I make of course is that over the years BMI has grown from strength to strength and we have done so simply because we consistently put our clients’ best interests first….and yes our own personal needs are being realised beyond our greatest expectations….:) You can read about what our clients think of us on our website, under endorsements (http://www.bmigroup.gi/endorsements).

So how have our personal needs been realised? ….sounds kinky I know, but seriously, only a few months ago we were invited to address a group of 40 plus fund managers at a conference held at the Sunborn Hotel. We were clearly flattered to have been asked to present along with the larger Law Firms, Accountants, Banks (oh dear it’s the big three again - starting to sound like a train crash) all keen to show off Gibraltar’s well regulated, and vibrant finance centre. Jokes aside it was pleasure for us to have featured at this event and it truly underpinned the confidence that a great part of the sector has in the work and the advice that we give.

As a result of the conference, not only has our profile been underpinned, but we have also generated a great many leads that we continue to work on and which have translated into a few interesting transactions.

So, enough of the self-ingratiation, let’s talk a little about the market, what’s new, what’s sold, whose buying and are we still on fire so to speak?

So far so good for 2014, since I last put pen to paper so to speak, the market has held and the trend which we highlighted would dictate the way ahead continues to show strength.

It’s the usual culprits such as Kings Wharf and The Anchorage that are once again experiencing increased demand and setting new heights in rates per sqm. This month alone we have seen rates of up to £5,400/sqm being achieved on sales in 1, 2 & 3 bedroom apt’s with a three bed selling for upwards of £700,000 at KW.

Ragged Staff Wharf and Atlantic Suites have also hardened in terms of sales with some recent sales of one beds in the later selling for up to £385,000 and two beds in Ragged Staff reaching sales prices of £540,000 and superseding the highest sales prices of the previous peak in 2008. 

“Bubble”, I hear you say……….well let’s take stock and consider the facts, facts which I have discussed in previous articles, but which may well require re-enforcing.

•  Sales are principally driven by owner occupier investment.

•  Stock is at the lowest it’s been for over 10 years.

•  There are no new forecasted high volume developments other than affordable housings schemes.

•  Lettings stock is at the lowest point for over 10 years too.

•  Our economy continues to grow at pace with a forecast growth in GDP of 7%+

•  High Value sales are up with an increase in £1m+ property sales suggesting a new tier in the market.

In addition to the above we have also seen the entire phase 1 of Buena Vista Park Villas sold with prices ranging from £1m to £2.6m. Given BMI’s success in reacting to this market and our involvement in a great part of this scheme, we have recently been asked to market The Sanctuary, a selection of five truly high value properties with specifications and areas unheard of in Gibraltar’s market to date. Please view our advert insert or visit our dedicated website http://www.bmigroup.gi/thesanctuary. Although a new pitch in the market and geared at the very top end of the bracket, we believe that there is already evidence to suggest this development is filling a gap in the market; one needs look no further than the recent sales at Lind House & Beaulieu House and both of which are being converted into substantial properties with financial exposures not dissimilar to The Sanctuary………..so is there a market at this level? We think so.

Finally a word on the office commercial front. We’ve been screaming out for offices for years now …. what’s that phrase again – ah yes, it never rains but it pours. Not one or two new commercial office projects but four are potentially in the pipeline, amounting to 45,000sqm plus of office space! The market is buoyant and business (at least from our perspective is growing), question will be, are we able to grow at the pace required to fill up these projects? Time will tell, but I will point out one thing to those considering their options, flexibility in layouts, large open plan floor space, parking, intelligent building, views, pricing…..but by far the most important factor will be experience – experienced project management with an experienced developer.

Enjoy your summer and don’t forget we’re open an extra hour from 8am to 6pm during July and August.

Sincerely

Louis C. Montegriffo

Managing Director.