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The ImovelWeb, real estate classifieds site controlled by Argentine Navent, acquired WImóveis competitor, Brasilia, and now passes to lead the segment in the federal capital. The company expects an increase of 20% in terms of customers and revenue as a result of the acquisition.
"It is a strategic purchase, once the market of the Federal District has many barriers to entry," says Mateo Cuadros, president of ImovelWeb.
The government of Spain, a year ago in leading Brazilian company, estimated that WImóveis has up to 85% of the online classified market of houses and apartments in Brasilia. The company's relationship with the real estate community, its technology and the way marketing hinder the entry of competitors, he says. "Our challenge is to maintain this market share.
The value of the deal was not disclosed, but includes an investment plan of BRL 20 million from ImovelWeb this year. Resources should be invested in more acquisitions and the opening of offices in secondary cities of states where the company is present.
Cuadros expects to grow 50% organically, until December, by the conquest of new customers.
The goal is to triple sales in the country in three years. The company does not disclose its current revenue.
The acquisition of WImóveis adds 1,500 to 8,500 customers that ImovelWeb recorded in August, said the executive.
There is no overlap of users.
The Wimóveis is a company with annual sales of BRL 10 million, established in 1998, in Brasilia. The site receives about 500,000 unique visitors every month and offers 43 000 ads.
The directors of the company are managed in the medium term, to assist in the transition.
Beyond the Federal District, the ImovelWeb has operations in eight states. The company operates throughout the South, in Rio, Sao Paulo, Minas Gerais, Bahia and Ceará. "Online real estate classifieds The market has a huge growth potential," said Cuadros.
In Brazil, more than 200 000 competitors, and between real estate brokers, but only 10% of them are included in the digital world.
In more mature markets like the United States, about half of the budget of the American real estate companies is spent on online advertising, according to Borrell Associates consulting report. There, spending on digital property listings rose 17% in 2013, compared with a year earlier, and grow in double digits for over a decade, says Borrell.
"In real estate, there is still a long way to go.
The traditional means of advertising are very strong, but, as the population has more access to the internet, digital advertising tends to develop automatically, "said Cuadros.
With an investment of BRL 2 million, the company prepares a new website which should go live later this month. "We just finished the migration.
It will be a smarter, faster and without invasive advertising platform, "said Cuadros. It projects 25% raise in the conversion rate in the business listings displayed after the change.