Business Plan For European Realty Group

In recent years,Chinese buyers have started to make a very strong presence on the global property market.This situation produces unprecedented opportunities to start and develop profitable realty businesses.Presently,in Spain the economy is consistently growing and the real estate industry develops exceptionally.Furthermore,Chinese investors are investing more and more in Spain.In response to this demand,European Realty Group(ERG)business model proffers a differentiated added value proposition.Market opportunity1.Customer Problem.The US,Canadian,Australian and British markets are highly developed and own impressive prospects.Nevertheless,three primary problems create customer concern: i.Pricing and demand: Due to the strong demand,prices are growing rapidly.These prices increases will eventually discourage myriad of future buyers;ii.New government measures: Countries such as Australia are increasing taxes on properties owned by foreigners;iii.Customization: Most companies offer the same standardized properties so customers need to adapt to the local layout and style.2.The ERG Solution.Our strategy unlocks these three problems: i.Pricing and demand: Property prices in Spain are within the most attractive in the world's developed countries,making worldwide investors jump in now;ii.Government measures: Spain government ' s fiscal planning seems to be oriented towards tax reduction.In 2015 several laws approved important reductions on personal and corporation tax.iii.Customization: Through strategic alliances with affiliate partners –architects,interior designers and promoters-,the company intends to provide the customer with innumerable valuable alternatives.3.Market size.Chinese overseas property transactions are predicted to hit US$220 billion by 2020.Only in Spain,in 2017 Chinese buyers are estimated to invest at least $1.2 billion on residential property.4.Competition.In Spain the property industry is highly fragmented.In addition,less than 0.1 percent of real estate firms are specialized on Asian markets.5.Why now?i.Economic growth and established trend of Chinese citizens: China economy grows steadily and a marked portion of the increasing number of millionaires plan to move overseas;ii.Regulations: The Spanish government has recently approved the so called‘golden visa' law.An investment of €500,000 in real estate gains family residency;iii.Demand,Prices and more: Spain is one of the most attractive property markets internationally.According to CBRE,the real estate investment in Spain will significantly grow in the next few years.In summary,this whole document incorporates all the relevant research and analysis necessary to conclude that European Realty Group owns the foundations to turn into a solid,sustainable and profitable business.