Commercial Director (P&O Homes)

P&O Homes sells properties in both Spain and Gibraltar. Could you give me a percentage breakdown between the differences of how much you sell in Gibraltar and the southern coast of Spain?

I would say that our marketing efforts are equal on both sides of the border, but there is a shift in the market of approximately 60% weighted towards property purchasing in Spain.



What is the main difference between these two markets different?

The difference between the two markets is that they are slowly both catching up on each other in respect to the captive client base. Obviously, the Gibraltar client base is very limited, so we do rely on ex-patriots coming to Gibraltar and the link that these ex-patriots have with Gibraltar, which are finance related, legal related or banking. The Spanish market is more the holiday home market and the Gibraltar housing market is specifically moving towards first home residences for locals.

What we are noticing from last month’s figures is the fact that on the purchases that are now taking place, we see that first time homebuyers are slowly been taken out of the Gibraltar housing market completely, due to the fact that prices are increasing at exorbitant rates. At some stage, that will have a negative effect on the market. This is being avoided at the moment by the fact that there is a lot of ex-patriot interest in Gibraltar as using Gibraltar as a base for business, so the first homebuyer is being replaced by the high net worth individual. However, what we are finding is, that most of these people do not qualify to own most property with the current scheme that are in place. These scenes were specifically designed by the previous administration to aid the local housing shortage and obviously certain conditions do apply for qualifying into these areas. How that is having a positive effect on the economy is that it is leading the owners of these particular properties to think that their prices can be compared to the prices in Queensway Key.
The effect of the higher end of the market is having on the lower end of the market is leading people to believe that there is one single property market and the prices are equivalent all across the range. That is taking the first homebuyer out of equation completely.



You have recognised that there are two types of different markets. How do you market your services to each individual market?

We like to be seen as an across the board company. We do not target the higher end of the market and we do not target the lower end of the market. Our marketing provides for a cross section of customers, so we are here to serve whatever comes through the door. Our property database is the largest in Gibraltar at the moment, but our company makes no specific marketing issues on the two different sides of the coin.



How much business does your Internet site bring to the company?

I would say about 10%, not more than that. The other 90% comes from marketing in The Times, in The Independent, in the UK and we also market very heavily in Gibraltar. I think that we have two to three pages in the Gibraltar Chronicle on a daily basis and we have very much become, and I am very proud of this, a local company. If the locals can rely on us and they are here 24, 7, then that will translate to the ex-patriot buyer, coming into Gibraltar, finding that if the locals trust this company then they should actually do the same.



Looking at the year ending 2004. Was it a successful year in terms of profit?

We have exceeded all sales targets in 2004. We knew that 2004 was going to be possible, but we surpassed figures by 22%. We had sales over seven million pounds worth of property, on a monthly basis.



So what goals have you set for 2005 and how do you plan on achieving them?

More than identifying what we need to do right, we have identified what we should not be doing wrong. Gibraltar is a very young market in respect of mortgage finance and property ownership. Thus, the real estate industry in Gibraltar, five years ago, was not up to speed. There were a lot of voids and there still are a lot of voids in the actual workings of the major companies in Gibraltar. Although it is negative, there is lack of regulation, so there is a lot to learn.

P&O has tried to be different in the fact that we are a fully-fledged member of the National Association of Estate Agents, as well as the Federation of International Estate Agents and Developers, as we are developers ourselves in Spain, but that is not the difference we provide. The difference we provide is that our website is the only website that is kept fresh, in that any property that comes in through the door will be up and running and all the marketing will be in place within the next two hours. We are pro-active, we send out alerts to clients on a daily basis. Our system tries to be as user friendly as possible while trying to gain the best business for the company.



You had mentioned that there was a lack regulation in Gibraltar. Could you tell us a little more about that issue?

I believe that anybody who is in the industry will acknowledge this fact, and I think it is a time for the major market player in the market to come together to do something about it because any negative move, which any of the smaller estate agents make, and any negative news which would come on to the market as a result, would be negative for all concerned. Therefore, I think that real estate market in Gibraltar has now come to a stage where it needs regulation and if the thrust does not come from the major players of the market, it just will not happen.



Do you know if the government has taken any steps to regulate the industry?

At the moment there is nothing, so no one regulates it. There has not been any move by any major player to actually regulate it. We are the only company that are regulated by the National Association of Estate Agents in the UK, and therefore we have to have a client account, all the good orders accounts and all our dealings in property must be totally transparent. And all of this information is kept in our system. That is what P&O thinks should be done in Gibraltar all across the board.



Looking at some of the current P&O developments, Atlantic Suites, Euro Plaza and Royal Ocean Plaza, which do you think will be the most successful and why?

The most successful development in my own opinion is Ocean Village, which is being developed by Greg Butcher. He has a vision for the future and I have full faith in the guy, so I am confident that he will deliver what he promises.



You obviously started the company. Where do you see yourself taking the company in the next two to three years, in which direction?

In a very young market, the only direction, which you can take, is maintaining your company at the forefront of the industry in which you are involved. At the moment, and with respect of new developments and resale, P&O is the leading company in Gibraltar. We also have major alliances and collaboration contracts with one of the major Spanish companies, AIFOS. They are one of the top ten building companies in Spain at the moment and they provide us with 72 new developments in Spain. It is not normal for any company of that size to grant exclusivity sales rights in any jurisdiction. In fact, we are the only agent worldwide, which is recognised by AIFOS in having a sales exclusive on their products in worldwide jurisdiction. It is the only exclusive that AIFOS has given ever, and it stands for Gibraltar. That says a lot for P&O Homes.



What would be your personal message for our readers?

With P&O you are in safe hands and we will continue to provide innovation to the market, such as the new pricing structures for the new developments in Spain. We have just designed a specific and exclusive investment product, for off-plan new developments, in which the client only pays a 15% over the construction program. Apart from the fact that the product stands on its own two feet, and it has a financing package which has never been seen before in this part of the world, all our developments have building licenses, building permits and ten year guarantees.