He pilots the Larvia group and the joint venture of that Spanish company with the real estate firm of magnate Warren Buffett. Bruno Rabassa (Barcelona, 1970) has been CEO of Berkshire Hathaway HomeServices Spain since 2019, when the company began operating in Spain. Since then, it has already grown in various parts of the Spanish geography and has offices on the Costa del Sol, Madrid (in the city center, Aravaca and La Moraleja) and Barcelona. But the company's intention is to continue growing, focused primarily on the luxury segment and unique assets.
“Our goal for 2022 is to buy two or three more companies to reach the dozen offices. In terms of billing, we want to double that of 2021 and also continue recruiting people. We want to grow both through the incorporation of new offices and through the consolidation of business structures”, reveals Rabassa.
In 2020, Berkshire Hathaway HomeServices acquired the Value Added company to enter Marbella, a point since it will control two other new offices soon, in Malaga and another in Sotogrande, reveals Rabassa. “Within a very few dates we will be able to count the acquisition of new companies in strategic locations in the Spanish geography. For example in the Balearic Islands and on the Mediterranean coast”.
Berkshire Hathaway HomeServices' expansion plan involves being present "in all those geographical locations where we can make the most of the company's international network." Apart from Madrid and Barcelona, the growth areas go through the Mediterranean coast, the Balearic Islands and the Canary Islands. "That's where we have the focus."
Buffett's company plan in Spain is ambitious, they seek to have 40 offices in the coming years. “In the US we are the number one company and our goal is to be number one in the world. We have to be number one in Spain in 10 years” he asserts. But he acknowledges that they have only been in operation for two years and they need time. They will seek to be the largest in real estate brokerage, "of course in luxury and also in terms of billing and offices."
The decision to acquire companies instead of opening offices is due to the fact that the Spanish real estate market "has peculiarities and differentiating elements in each location that make it necessary for local experts, who are the owners of these companies", explains the manager. “Instead of starting from scratch, we started from a much bigger advantage position.”
Growth in all markets
Regarding the type of homes they sell, he indicates that they are in the luxury segment, a concept that he considers subjective: “What we try to do is offer luxury products but with a varied range for different audiences. Not only do we sell homes for 35 million euros, we also carry out operations in certain places that are for 600,000 euros”.
The company does not detail last year's billing, but Rabassa does reveal that in 2021 it achieved a "very notable" increase in revenue in all business units. “In Madrid we have had an increase of 60%, in La Moraleja 20%, in Aravaca 28%, in Marbella the increase in sales has been 150% and in Barcelona 100%. In total, we are around 110%, more than doubled”.
This improvement in the business comes from the consolidation of the teams and also from what the pandemic has meant, according to Rabassa. “Covid has been an accelerator in decision-making and, in addition, our potential clients had increased their savings rates. It has not happened only in Spain, it has happened all over the world”. For this reason, buyers have taken the opportunity to acquire houses that are more suited to their lifestyle. “The notable growth in Marbella has been propitiated by a movement of Northern European clients who have come to settle in Spain, looking for their first residence. The communications we have in Spain are extraordinary and it allows them to move their families, telework and have mobility”.
liquidity in the market
He also assures that there is still a lot of savings that he wants to channel to real estate. “There is a lot of buyer demand, a lot of liquidity, and yet we find very few properties for sale,” he says. Rabassa indicates that the US parent company provides an important international network, brand and image, and processes and tools "unmatched" in the market. "He brings a lot of credibility, a lot of training to the teams and a know-how." Likewise, he recognizes that he puts the necessary resources. “The purchases are made thanks to the financial muscle of the Spanish company and if the Spanish company needs a capital contribution, the partners contribute capital”.
The real estate consultant Larvia was founded in 2012 by the Rabassa family, which has operated in the real estate sector since 1964 with Petrus Grupo Inmobiliario. Three years ago he sealed the strategic alliance with Buffett's real estate company, in one of the many businesses of the parent company.
Regarding the clientele, Rabassa points out that Latin American buyers arrive strongly, both in Madrid and in Barcelona. In the Catalan capital, the Europeans have given up space. “Europeans are not buying as much as before in Barcelona. It is a political issue. They are affected by the constant aggressive demonstrations that take place in the city, and they are also concerned about legal insecurity with the entire squatting movement, which is highly encouraged in the city of Barcelona”, he laments.
He also explains that in real estate brokerage there is a very important role of second-hand housing, as a result of "the difficulties" that the promoter sector finds to produce housing. “In new construction we are marketing some assets, mainly because some of the large operators are owned by foreign capital and our brand has caught their attention. However, we would like to be selling more units, basically limited because production levels are lower than they should be”, he points out.
Berkshire Hathaway HomeServices is growing all over the world. It has offices outside the US in Canada, Mexico, Portugal, the UK, Italy, Dubai, Greece and India. “Soon we will be in France, Belgium, Luxembourg, Poland or Hungary. To become the first real estate agency in the world you have to be everywhere. The Covid has slowed down the growth of the international network. Even so, offices have been opened.
