One more year Tinsa is the leader on the podium of the great appraisers in Spain. According to the data collected by the Spanish Association for Value Analysis (AEV), an employer association that includes the 21 main companies in the sector, Tinsa closed 2019 with a turnover of 72.4 million euros.
This figure represents more than a quarter of the total turnover of the 22 companies that were part of the AEV last year, although it represents an annual decrease of 7.8%. “Our commitment to quality and service keeps us leaders in an extremely competitive sector,” explains José Antonio Hernández Calvín, general director of Tinsa Spain, who points out that “we now have a context of great uncertainty ahead of us, in which knowledge and technology will be differentiating elements”.
After the appraiser owned by the venture capital fund Cinven is Sociedad de Tasación, which in 2019 climbed one position in the ranking and is second with a turnover of 34.1 million euros. The firm manages to improve its position despite the fact that turnover has fallen by 8.5%.
The third on the podium is Gloval Valuation, which drops one place after seeing its turnover cut in 2019 by 24.7% to stand at 31.1 million euros. Company sources point to elEconomista that “it was formalized last March, but it still required six more months of stabilization due to its implications for the company’s procedures, systems, and staff, so we were counting on this transition having a temporary impact in our 2019 results.”
In addition, “and in relation to our services for the banking sector, last year they still had a high concentration in some entities, in some cases disappeared, and there was also a general drop in the valuations of the banks’ own portfolios due to the massive sale of portfolios to funds without regulatory valuation obligations. Again, we had already anticipated that these factors would also impact our results”, they explain from Gloval.
Gevalt remains fourth with 20 million euros and is followed by CBRE with 17.3 million and growth of 5.8%. Euroval also maintains its sixth place with a turnover of 14.4 million and an increase of 13.4%.
Total turnover falls 4%
These six appraisers have a turnover of 189.3 million euros, representing 69% of the total turnover of the firms that make up the AEV, which in 2019 reached 274.3 million euros, representing a decrease of 4%. Over the previous year. This decrease is consistent with that of the total volume of appraisals carried out, which fell by 5.27% compared to 2018, to a total of 1,100,000 appraisals. The total value of the set of appraised properties also decreased, although more gently, with a fall of 1.25%.
“The activity and billing data of appraisers in 2019 confirm the slowdown scenario that was already glimpsed in the real estate sector at the end of the year and that now, with the COVID-19 health crisis, is much more uncertain,” explains Paloma. Arnaiz, General Secretary of the AEV.
“In this situation of strong uncertainty, valuations will once again be seen as one of the essential and most effective instruments to provide confidence to the market and enable the reactivation of the economy; not in vain, appraisal companies are investing their best efforts in these days to ensure that their methodologies and criteria are appropriate and prudent when it comes to providing an accurate view of the market and real estate prices”, Arnaiz points out.
Mortgage appraisals fall
The appraisals carried out for mortgage purposes have suffered a decrease both in volume (-7.65%) and in the amount appraised at a global level (-4.16%). “These data are a consequence of the aggregate effect of the activity for the year as a whole since, if we only analyze the last three months of the year, we see that both segments, complete appraisals and mortgage appraisals, grew in volume compared to the fourth quarter of 2018, at rates of 1.75% and 4.35% respectively, partly offsetting the worse performance of the rest of the quarters”, they point out from the AEV.
This upturn in the fourth quarter could be explained, “in part, by the delay in a certain number of mortgage operations which, with the entry into force of the Real Estate Credit Contracts Law, were postponed for a few weeks, until all were resolved.” operational difficulties that arose at the time”, according to Arnaiz.
Another aspect that explains the downward trend in activity data is the progressive sale of real estate asset portfolios by banks, which has been eliminating the need to continue valuing them annually, added to a certain slowdown in the mortgage market in 2019. .
According to INE data, home mortgages grew by only 3.24% compared to 2018, compared to growth of 10% in previous years.
The average appraisal amount of homes valued for mortgage purposes (total value of appraisals divided by number of homes appraised) grew by 4.08%, from approximately 191,200 euros to almost 199,000 euros. For this purpose and type, some 410,000 appraisals were carried out in 2019, 2.93% less than in 2018.
Portfolio valuations rise
The growth of automated valuations (AVM for its acronym in English Automated Valuation Model) is consolidated, which after the low levels of activity in 2018, due to the awaiting publication of the Bank of Spain regulations, exceed the volumes of 2017 , with close to 1,850,000 automated evaluations, which represents a growth of 60% compared to 2018.
The greater volumes of work started in 2018 and 2019 have also caused a significant increase in intermediate work valuations, necessary for banks to be able to release the loan to the developer. In 2019, almost 33,000 appraisals of this type were carried out, 24.4% more than in 2018.
The tendency of Madrid and Barcelona to accumulate activity to the detriment of other areas of the Spanish geography continues. In these two cities, 9.25% of all appraisals are already carried out, which represent more than a fifth (21.41%) of the global amount appraised in Spain in 2019.
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