On the 15th and 16th of November, Hipoges attended the 5th National Real Estate Servicing Congress organized by the CMS Group. The event took place at the Teatro Goya Multiespacio, in Madrid, with more than 720 registered participants, over 80 speakers were present as well as more than 60 sponsors, Hipoges was proud to be part of this event as a Platinum sponsor.
In addition, it was a great space for networking. There were three main points on the table to debate, the progress of the provision contracts for real estate services, to analyse the current context that is looking challenging, marked by changes in housing policies, a limited supply of services Partners and access to housing and the future of the industry from the vision of two leaders of Top Servicing Español.
First day at the 5th CMS Group National Real Estate Servicing
Different real estate experts started the debate with some welcoming words. In turn, Ignacio Vilarroig Managing Director Europe together with Paola Ortega Conference Director Asset Management Europe, both from the CMS Group, were the moderators for the event’s debates.
First debate: New Real Estate Servicing Contracts: Bank’s Perspectives on the NPE’S & REO’s market
For one hour, senior executives from the banking sector spoke about the evolution of real estate service contracts, new requirements, the sector’s main challenges in a complex macroeconomic scenario and its future perspectives. They comment that “there are still 200 billion under management, but we are not talking about the same type of product, nor the contract, nor the relationship with the customer. “We have to manage this, but in a different way.” Furthermore, “service providers must focus on specialization that provides added value and, technologically, a service that is more difficult for banks”. Finally, 𝐎𝐬𝐜𝐚𝐫 𝐁𝐮𝐫𝐠𝐨𝐬 𝐈𝐳𝐪𝐮𝐢𝐞𝐫𝐝𝐨 Santander’s Recovery Director, adds that “there will always be opportunities and there will always be opportunities, no matter how concentrated the industry is. Concentration is necessary and positive.”
Second debate: Public-private collaboration in a context of high interest rates and scarce affordable housing
In a challenging context marked by changes in housing policies and limited supply of social and affordable housing, possible public sector collaborations were considered, and how Servicers could help in the management of contracts in the hands of Public Administrations. “There will be a need for managers, and the dedication of those of us who are working in the field, is to be specialized managers, in addition, we should also be comprehensive managers”, they comment.
Third Debate: The dizzying transformation of Real Estate Servicing: opportunities and challenges
The leaders of the Spanish Top Servicing had the opportunity to share their vision about the future of the industry in a context of sector consolidation, banking integration and a predictable change in the real estate sector cycle. Among them, our Managing Partner and CO-CEO, Hugo Velez, commented that “people are putting more pressure on quick performance, but there has to be an alignment of interests and the definition of realistic objectives. The industry is not new, it has been around for over 20 years. “The tendency is for it to become increasingly variable.”
Second day of the 5th CMS National Real Estate Services Congress
First debate: Real estate in Spain: Investor appetite and the sector’s biggest issues
Spanish real estate leaders shared their strategy on how to promote a sector that has great potential to attract investment, but also presents great challenges. They concluded that “interest rates are the most determining factor affecting the price that can be paid”.
Second debate: Effective rental management: the key to success to ensure the profitability of BTR and affordable housing models
The management of housing rental portfolios marked this debate. In addition to the great challenge of the BTR models and the future public park that Spain needs, and the management of tenants and properties during the asset’s exploration phase. “It’s incredible what was valued before and after Covid. Today, more than ever, people are looking for and demanding quality services”, concluded the speakers.
Third debate: Impact of the Housing Law on the management of NPE’S and REO’s portfolios
In this debate, different strategies were proposed by asset holders regarding the impact of the Law on their Business Plan, without envisaging a clear future paradigm after years of major changes.
Fourth debate: Illegal occupation in Spain: cost reduction through efficient management of security solutions against illegal occupation
Leading companies in the security solutions sector analysed the impact that incorporating technologies that allow protecting properties from illegal occupations has on cost efficiency. And how this results in a competitive advantage for asset holders. Speakers commented that “safety is measured in reaction time and delay time. The ability to resist and maneuver is essential.”
Fifth debate: The rental market in Spain: The key to investing in an unstable and uncertain context
For forty-five minutes, the interest of the rental market and how to attract investment in the face of the current legal instability was discussed. “The supply decreased by 15%, and real estate agencies do not have product at the moment. The consequence is a high demand and, consequently, the rapid rental of houses.”
Sixth debate: The challenge of Reforming Large Real Estate Projects: Financing as an important challenge
However, in the Real Estate Insight Room it was discussed how large real estate projects bring with them major challenges where financing in the current context has become one of the major obstacles to overcome. “Financing, in the current context, is one of the main obstacles to overcome”.
Seventh debate: Investment in the real estate sector. How to maximize the value of an asset?
In a very attractive Spanish real estate market for investment, the strategy and recommendation of property owners was analysed to maximize the value of their assets in the residential, commercial, industrial, hotel and tertiary sectors. “What delays the investment the most are the deadlines. Investment costs are worrying, but they are not what keeps investors away the most.”
Eighth debate: The real estate debt market. Stock of NPE’S and REO’s in Spain and Real Estate Servicing undergoing complete transformation
In addition to our Director of Real Estate Spain, Carlos Pérez de Yrigoyen, financial entities, investors and servicers analysed the current context of the mortgage debt market in Spain, the movements of NPL Secured portfolios and forecasts for the behaviour of a sector that specializes in response to a more complex context. It was commented that “margins are decreasing and the business is there, but we cannot depend solely on this business, which is why we started other initiatives”.
Ninth debate: Challenges of urban planning, territorial management and WIP projects in Spain, where are the great opportunities?
During this debate, different phases were presented in which one can invest in a WIP project and how to make the most of this type of asset, as well as the potential of land projects, their advantages over other types of investment and the challenges that remain. “In the world of soil, although the processes that accompany its development are not agile, the product is adaptable according to trends that may exist in society. One thing is clear: the need for available housing, in line with demand. The solution to this can only happen through the soil. It is a safe investment, and, in addition, it is a strategically fundamental product.”
Tenth and final debate: Judicial recovery and the right to an efficient asset management service
Experts have seen how efficient document management at the beginning of the judicial process can speed up the asset recovery process and, therefore, reduce time and costs in foreclosures.