Grupo GS, the promoter founded by Sevillian José Luis Vera a quarter of a century ago, is closing a record year. During these twelve months, it reached a business volume of 300 million euros, it faces its first tourism project with a hotel of … 150 rooms on the coast of Huelva and made its first foray into the international market with two residential developments in Portugal. Its president is still digesting this leap in level which completely transformed the company at a time when housing became a problem of national emergency.
Continuing to achieve important milestones and consolidating the “boutique real estate” model are the steps outlined in the roadmap to ensure the business continues to grow under family control. Vera admits that she would like to see the next generation at the helm, who are already embarking on the adventure.
– It was an important year for Grupo GS, a milestone anniversary, a first international project and the jump into the tourism segment. Have you already digested all these events?
-I must say that for us it was a fantastic year in which we grew a lot. The sector is going through a very dynamic period and we have taken full advantage of it. We are going to exceed 300 million in business volume, which is a fairly significant figure that we have set ourselves as a goal and which we have already achieved. I can also say without fear of being wrong that we are the most present luxury real estate agency in the national territory and that we will now start with an international presence in Portugal.
-The last market they explored was Galicia. How was the experience?
-Alright. At Sanxenxo we launched the promotion a few days ago and it was a success. We had a lot of demand from customers, more than 500 interested in 33 houses in the promotion, truly incredible. In fact, we have carried out a first launch in which we have been very successful for Galician clients and now we will do another for the Madrid region, where there is a high demand for properties of this type.
– How long have these houses been sold?
-In 48 hours. Fortunately, I can say that for us this is not exceptional, our promotions generally have this requirement.
-Despite the prices? They are generally not affordable
-We have focused on the luxury segment, we always offer high quality homes, fully customizable and located in very “prime” locations. It’s our label, but they’re always in high demand. Which makes it difficult for us to put a price because we cannot find a reference. We define it based on the offer we see second-hand and update it by applying a series of parameters and big data tools. Now we do everything with technology.
-How important is technology in this sector?
– A lot, more and more. We have been working with Big Data for a long time, but we also apply artificial intelligence in all our processes. Now we do it internally and this makes our task much easier, but we carry out the entire relationship with the customer face to face to offer them personal and differentiated treatment. I don’t think this will change, no matter how much technology advances. But we are facing an intense digitalization process as all companies need to modernize and accelerate their processes.
-This year the company is also facing a diversification of the economic model with the entry into the tourism segment.
– Precisely, our first project is a hotel that we are going to build in La Antilla with 150 five-star rooms. In fact, this week we had a meeting at the Lepe City Council to see the process and everything is very advanced. We have already practically approved the partial plan and, in addition to the hotel, we will acquire 330 housing units. The idea is to put the first phase of the promotion on sale in the second quarter because there are many interested buyers. These are residential, non-tourist apartments, and there is high demand in the area as there is virtually no supply left on the market. It’s a great location, with two and a half kilometers of pristine beach.
“We receive offers to purchase the company every day, but I hope my son continues on this path”
-Was the process difficult?
-All procedures are difficult, but in this project we had the help and unconditional support of the Lepe City Hall, which was very fast and very diligent. They understood that it was a good project for the municipality and promoted it.
-Haven’t you encountered environmental opposition when it comes to large seaside development?
-We did not have any environmental opposition because from the first moment we explained it and they could see that we take great care of the ecosystem and that we integrate very well. We are a company that focuses a lot on energy efficiency and sustainability. We also do not cause a great visual impact and we have withdrawn quite a bit from the terrestrial maritime zone, much more than what is required by coastal law. Our project has a lot of green space, there is no aggressive impact and it fits well into the environment.
-When you get land in such a good location, do any offers come in to buy it?
-Yes, they always arrive. I think that in all the projects that we have launched or are going to launch, investors have come wanting to buy to develop them themselves. Some are funds and others are large companies. This practice is now very common, but we don’t like it. We always work on our projects from start to finish, moreover, we have a co-investment model with our partners and we are with them for this, to develop the project from start to delivery of the houses. We care a lot about branding and we don’t want to launch a project and then sell it, but rather make it a reality. And the other is perhaps more profitable, I don’t deny it, but it’s not our business.
-And do you receive purchase offers from the company?
– Also. It’s daily, but we don’t consider it.
-Not even if they presented you with an irrefutable amount?
-I started this business 25 years ago and I hope that my son, who has worked with me for three years, will continue in this business. And in fact, I’m teaching him to keep doing it. Initially, I want the company to continue to be family-owned, although we have given access to some strategic partners at some point, such as the Sáez de Vicuña family and Iván Bohórquez Domecq. What I would like to do is continue with the company and make it bigger, try to outsource our business model to other countries and make it more powerful.
“If foreign labor does not arrive quickly, we will face a big problem in a few years.”
-Given the housing problem in Spain, do you ever consider building VPOs or apartments at affordable prices?
– This is not our model and we specialize precisely in the luxury segment, but I am aware of the problem we have with housing and I fear that in the current state of affairs it will be difficult to solve. If more finalist plots of land are not put on the market and the bureaucratic obstacles remain as numerous, it will be complicated.
-When do you think real estate prices will stop increasing?
-I still don’t see the end of the rise in real estate prices. We are not facing the bubble of 2008, the problem we have is that the supply available on the market is very limited compared to the great demand we have. Until a balance is achieved, I fear this figure will continue to rise. And on the other hand, there are construction costs, which have continued to rise since the war in Ukraine, both in terms of materials and labor.
-Does it have a lot of impact?
-Plot. Despite the prices, promoters’ profit margins are increasingly reduced because these costs have increased significantly, particularly labor costs due to the lack of qualified labor. It is difficult to find mason workers, but when looking for more trained profiles to become first class officers, it is an almost impossible task and the situation gets worse. If foreign labor does not arrive more quickly, we will face many more problems in a few years.
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