Realia Group’s strong growth and development continued in 2017
Realia Group, the largest real estate management and real estate brokerage company in the Nordic countries, continued its strong growth throughout 2017.
The positive development of the economic environment in Finland and the Baltic countries, as well as the development of the group’s own operations and international expansion, increased group turnover and kept profitability at a good level. The main drivers of growth for the economy and also for Realia Group are housing construction and private consumer demand.
Realia Group’s Finnish real estate management services grew profitably, but growth of real estate brokerage services was more moderate. In addition to organic growth, business acquisitions played a significant part in property management services. Three business acquisitions were completed in 2017. In February 2017, Realia Group Oy acquired the Swedish Hestia Group, which further strengthened Realia’s capabilities in business premises management as part of its real estate management services. Through the Hestia acquisition, Realia Group’s real estate management services have now expanded to Sweden and Norway. Housing company management services were strengthened by the acquisition in May 2017 of Espoo Isännöinti Oy and LK-Isännöinti Oy in Espoo. These acquisitions further strengthen our market position in the Helsinki metropolitan area. Realia Group is the market leader in residential property management services in Finland, and turnover in this business segment increased by 26 per cent from the previous year. The group has also grown strongly in real estate management services in the investor customer group, both in rental housing and commercial premises management. In Finland, turnover for these services in 2017 was 12 per cent compared to the previous year, but in the other Nordic countries turnover in 2017 for the services in question grew by a total of 57 per cent compared to the previous year. Acquisitions had an important role in growth in both housing company management and real estate management services.
The turnover of our services in 2017 was EUR 138.9 million, a growth of 21.3 per cent on the previous year EUR 114.5 million). The business acquisitions completed in 2016 and 2017 supported organic growth. Realia Group's EBITDA for 2017 was EUR 14.8 million (2016: EUR 13.3 million).
Growth through customer service expertise, digitalisation and acquisitions
In the future, the group will seek growth organically as well, through gaining new custom. In all service sectors, having satisfied customers is a precondition for organic growth. As before, measuring and developing the customer experience will be a key part of the new strategy, and its impact our work with customers will be strengthened in the coming years. In real estate agency services, customer reviews of the Huom! brand are public, and with regard to reporting and performance Huoneistokeskus has revised its own net promoter score (NPS) recommendation index. In residential property company management services, systematic monitoring and development of operations in Realia Isännöinti Oy has improved customer satisfaction significantly over the last three years, which is also evident in business development.
The role of group personnel in creating the customer experience is central, and employee wellbeing, training, good leadership and other parts of the employee experience play an increasingly important role. Creating a strong and unified service culture is vital to the group’s continued growth.
In addition to improving the customer experience, the group’s large customer base in both the consumer and business sector, systematic customer feedback and use of customer data also support the development of new digital solutions. There is great potential in both real estate management and real estate brokerage services the improved internal efficiency and improving the customer experience. Digitalisation is bringing about major changes, and as a strong operator Realia Group has the resources to create new services for its customers.
Acquisitions and internationalisation are also important to the growth of Realia Group. The group’s operations expanded to Sweden and Norway in 2017, and as we see it, an increasingly international future environment for real estate management will create new customer needs and further increase the group’s expansion opportunities in all the Nordic countries.
There will be continued growth in interest in housing and other real estate and their development as investment targets, business facilities and commercial premises and homes and as part of urban planning. At the same time, customer demand for high-quality service is growing, and in this environment Realia Group is excellently equipped to create new services and products.
* Price monitoring service of the Central Federation of Finnish Real Estate Agencies (KVKL), to which all major property brokerage companies report their sales information.
Matti Bergendahl, CEO, Realia Group Oy, tel.: +358 40 833 5461
Realia Group is the largest expert service group in the Nordic countries specialising in the brokerage and management of apartments, properties and commercial facilities. Companies in Realia Group include Huoneistokeskus, SKV Kiinteistönvälitys, Huom! Huoneistomarkkinointi, Realia Isännöinti and Realia Management. Ober-Haus and Hestia operate in the Baltic region, Sweden and Norway. Realia Group’s annual turnover is approximately EUR 139 million, and it employs more than 1,900 professionals. All of the companies emphasise customer satisfaction, which is created with tailored products and proactive, professional service. www.realiagroup.fi