From Home Staging to PropTech and Gentrification to MLS, many new concepts are emerging in day to day speech with the rapid ascent of the Spanish real estate sector, lots of them being English loanwords.
In order to make real estate information more accessible to society at large, the Alfa Inmobiliaria network has collected together the 10 most frequently used new terms in the sector. idealista/news summarises what they are and what each one means, so you can be on the cutting edge of the property market in Spain:
- Real Estate Broker: This term is used to designate the person in charge of managing the whole process of buying and selling real estate and the relevant negotiations. It's basically a normal real estate agent that we all know and love. Recently, it has become a trendy second job for many people looking for extra income, as well as professionals from the banking world who lost their jobs due to restructuring in the sector. In fact, employment in real estate activities is at an all-time high.
- Prime: This word is widely used in the market for sales of offices, although it is also used for residential homes. It is synonymous with exclusivity and excellent quality of a particular location or property. Typically, investments in assets located in these locations are low risk, either for purchase or lease. The centres of large cities and financial areas are usually considered prime locations.
- Home Staging: In recent years, there’s been a lot of talk about this technique, which was born in the USA and created by Barb Schwarz. It consists of specially preparing a property so it’s more attractive to future tenants or buyers. This staging involves giving value to the small details to influence and incentivise the client and to reach an agreement at the best price and in the shortest time possible.
- Render: In the digital age, the real estate sector is making the most of technological advances to show customers a true picture of what the exterior and interior of a home or other property can look like. To do this, they use renders, which are computer-generated images that are usually used to show how some renovation or building work will look once it’s done, or to get an idea of the dimensions.
- CIRBE: The acronym comes from the initials in Spanish of the Risk Information Centre of the Bank of Spain (Central de Información de Riesgos del Banco de España). This is a database that includes the products that financial institutions have with their customers (loans, guarantees, etc.). Its aim is to control and assess the financial risks incurred by the banks, companies or individuals themselves, and to make the information available to the public. More information can be found on the banking regulator's website.
- Gentrification: This word, so much in fashion now, is used to refer to the process by which a run-down urban space is transformed when it is "discovered" by people with a higher economic status who decide to settle there, attracted by the good value for money. This generally results in the poorer inhabitants being forced out due to rapidly rising rents, and is a serious social problem. In Madrid, for example, this gentrifying process is happening in neighbourhoods such as Huertas, Lavapiés, Malasaña, and more recently Carabanchel and Cuatro Caminos. In fact, it’s a phenomenon to which almost none of the world's most touristy cities are immune.
- Touristification: Alfa Inmobiliaria defines this expression as "a displacement of the indigenous population similar to the previous one, but driven by tourism and leisure". What up until now it was called "Venice Syndrome", this neologism is a process that leads people to move to other neighbourhoods if they’re forced out by tourist lets, for example, making new areas more expensive or more valuable.
- Project Management: This English word that has found its way into common Spanish parlance encompasses an entire discipline that includes planning, organisation, motivation and control of existing resources for a given real estate project. It is a kind of 'controller', whose objective is to achieve the success of the project by meeting certain parameters of time, budget and quality. There are now many hip companies in Spain that offer project management services.
- MLS: Standing for Multiple Listing Service, this is a collaborative list compiled by professionals in the real estate sector which allows any MLS member to market real estate captured by another member. As Alfa Inmobiliaria explains, the service is governed by a code of ethics that is accepted by all its members, which regulates the operation and rules of cooperation.
- PropTech: Last but not least on our list is a portmanteau that mixes the terms "property" and "technology"; it consists of applying technology to property. This trend aims to reform the real estate market, improving it through the combination of the latest technology using virtual reality, home automation, real estate portals and more, and is quickly becoming the hottest concept in real estate today.