Engel & Völkers: Redefining Luxury Real Estate with Unprecedented Growth in Canada

Engel & Völkers, a globally recognized leader in luxury real estate, continues its impressive growth trajectory within the dynamic Canadian market. According to CEO Anthony Hitt, the company is poised to either match or exceed its remarkable 2017 performance, a year that saw the addition of 11 new shops and an astounding 90 percent surge in sales transactions. This momentum underscores a clear strategy: Engel & Völkers remains firmly in an aggressive expansion mode, solidifying its presence across the vast Canadian landscape.

Strategic Market Penetration and Record-Breaking Expansion

The Hamburg, Germany-based brand is not merely growing; it’s strategically deepening its roots in key Canadian markets. Illustrating this commitment, Hitt announced plans for a new office opening in downtown Toronto, a crucial hub for high-value properties and discerning clients. Furthermore, the company is set to launch an office in the vibrant Halifax market this year, extending its reach eastward. These targeted expansions are critical components of a larger vision to serve clients in prime locations nationwide.

After just a few years of operation in Canada, Engel & Völkers has swiftly established a significant footprint, boasting approximately 30 shops and a dedicated team of around 400 real estate advisors. This represents a substantial 22 percent increase in salesperson count in 2017 alone, compared to the previous year. The financial results are equally compelling, with the company’s sales volume soaring by 79 percent in 2017. Notably, on a percentage basis, Engel & Völkers’ Canadian growth significantly outpaces its expansion in the United States, where the brand opened approximately 25 outlets during the same period. This highlights Canada as a particularly fertile ground for the brand’s unique value proposition.

Anthony Hitt reflects on this extraordinary success, stating, “2017 was an incredible year for us in Canada, and that trajectory shows no signs of slowing down in 2018. It’s clear that our brand resonates deeply with Canadians who are seeking a distinct level of service and wish to align themselves with a particular caliber of real estate experience.” This profound connection with the Canadian clientele has propelled the company’s expansion well beyond initial projections, signaling a robust market demand for a comprehensive, international luxury brokerage.

Filling a Market Void with Unparalleled Service

Hitt emphasizes that this “phenomenal” growth is not accidental but rather a direct response to a discernible void in the Canadian real estate market. “Canada is such a vast country, presenting an abundance of opportunities,” he explains. “Our philosophy is ‘we are where our clients are, in the best locations.’ In reality, we follow our clients’ needs, and our brand expansion has consistently operated on this principle.” He points out that the landscape of real estate brands in Canada has become somewhat limited in recent years, particularly concerning full-service, internationally connected brokerages, aside from a few regional players. Engel & Völkers steps in to bridge this gap, offering a sophisticated and globally integrated solution.

A key factor in attracting top real estate professionals to Engel & Völkers is its cutting-edge technology platform. This robust platform not only connects agents and clients within Canada but also seamlessly links them to a vast global network, providing unparalleled reach and opportunity for both buyers and sellers. Beyond technology, the company’s distinctive “shop concept” and comprehensive training programs are significant differentiators. “There’s been a clear void in the marketplace,” Hitt notes, “and high-producing agents have been incredibly drawn to what we offer. We’ve seen them thrive once they join our team.”

While many brands claim to possess superior listing and marketing tools, Hitt confidently asserts, “I genuinely believe we offer best-in-class solutions across the board.” This conviction is exemplified by the brand’s proprietary Extensive Domestic & Global Exposure (EDGE) product. EDGE transcends conventional syndication platforms, offering an elevated level of international exposure that ensures properties reach a worldwide audience of qualified buyers, far beyond the capabilities of standard local or national listings.

Pioneering Technology for an Elevated Client Experience

As a “progressive brand,” Engel & Völkers is committed to being at the forefront of technological innovation, but with a critical distinction: technology must enhance the client experience, not merely serve as a gimmick. Hitt is a staunch advocate for advancements like virtual reality (VR) and 3D tours, which provide potential home buyers with a deeply immersive and alternative perspective on properties of interest. While these technologies are not intended to replace the essential in-person walkthroughs, they play a crucial role in streamlining the buying process. By offering a detailed virtual preview, they can help buyers efficiently filter and eliminate properties that don’t meet their criteria, thus optimizing the time spent on physical viewings.

“Our adoption of virtual tours has been extremely successful,” Hitt proudly states. “I believe we currently feature a higher percentage of our listings with virtual tours than virtually any other major brand in the market.” This commitment to leveraging intelligent technology underscores the company’s dedication to providing a modern, efficient, and engaging experience for both buyers and sellers in the luxury segment.

Technology, while a fundamental pillar, is always in service of Engel & Völkers’ core identity and mission. “We understand exactly who we are and who we will continue to be,” Hitt clarifies. “And that is, first and foremost, a company dedicated to helping buyers and sellers navigate the complex world of real estate – and, on occasion, even facilitate the acquisition or sale of a yacht or plane. Our technological advancements are designed to enhance this fundamental purpose, not distract from it.”

A Brand Built on Agent and Listing Excellence

At its heart, Engel & Völkers operates as a listings-centric and agent-centric company. This dual focus is a powerful magnet for the industry’s most successful professionals, particularly top-producing listing agents, who recognize and appreciate the brand’s unwavering support for their endeavors. “Many real estate brands have, in a sense, lost sight of their foundational identity,” Hitt observes. “One thing we are exceptionally adamant about is consistently delivering a distinct brand experience. Therefore, we actively seek advisors who are not only skilled but also committed to embodying and providing that unparalleled brand experience on a global scale.”

This commitment to a clear brand identity and empowering exceptional advisors creates a symbiotic relationship that benefits clients immensely. It ensures that every interaction with Engel & Völkers, from initial inquiry to closing, is characterized by professionalism, expertise, and a deep understanding of the luxury market’s nuances. The focus on high-quality listings and highly trained agents reinforces the brand’s reputation for excellence and reliability in a competitive industry.

Resilience in the Luxury Market and a Vision for Quality-Driven Growth

Looking ahead, Hitt expresses optimism about the Canadian real estate market, particularly within the luxury segment, even in the face of potential economic uncertainties such as the implications of the NAFTA agreement. He posits that the luxury market often operates with a degree of insulation from broader economic shifts. Individuals involved in buying and selling high-end properties are typically making lifestyle decisions, choosing to reside where they desire, irrespective of minor economic fluctuations. “I harbor no long-term concerns about Canadian real estate, and in most cases, not even short-term ones,” he confidently states, underscoring the enduring appeal and stability of the country’s premium property market.

While unable to forecast a specific size or market share target for Engel & Völkers in Canada, Hitt reiterates the brand’s fundamental philosophy. “We are not a market share-driven brand,” he clarifies. “Our primary focus is unequivocally on identifying the right people and establishing ourselves in the right locations to consistently deliver the absolute right level of service. We are firm believers in leading with quality, and allowing quantity to naturally follow.”

This strategic patience and dedication to excellence define Engel & Völkers’ growth strategy. “We are not going to move faster than we need to,” Hitt asserts, emphasizing a deliberate and thoughtful approach to expansion. However, he also acknowledges the immense potential that lies ahead: “There are abundant opportunities and a significant number of individuals actively seeking something distinct and superior when it comes to engaging with their real estate professional.” This sentiment perfectly encapsulates Engel & Völkers’ unique position, poised for continued, sustainable growth by consistently exceeding expectations and setting new benchmarks for luxury real estate service across Canada.