6. Case Study of the Irish Real Estate Industry

This chapter provides industry evidence by providing a detailed case study of the Irish real estate industry. This case study provides empirical evidence as to the reasons for the emergence of franchising and its impact on industry evolution. This chapter presents an industry history of the Irish real estate industry from the beginning of the 1900s to the present day presenting following both firm and industry-level changes over the decades in a chronological account. The historical account is based on primary and secondary data collected from the Irish real estate industry. The focus of this study is on real estate agents predominantly trading in the residential property market. There are seven leading residential real estate agents in Ireland, namely Sherry FitzGerald, Douglas Newman Good (DNG), RE/MAX, Hamilton Osbourne King (HOK), Gunne, Lisney, and Property Partners (a co-operative organisation based in Galway composed of independent property real estate agents). However, in recent years, Sherry FitzGerald and DNG have emerged as the two industry leaders; with both firms claiming to hold 60 per cent of the total market share (see Table 6.1). The two firms have a nationwide presence in Ireland, and have grown using franchising as a business model Sherry FitzGerald first introduced franchising to the industry in 1999 pending the imminent threat of entry from the international franchise chain RE/MAX who entered the Irish market in the same year (2004) DNG adopted franchising. Today Sherry FitzGerald claims to hold the number one position in the industry with DNG in second position, based on sales and outlet presence. The industry consists of a large number of small independent real estate agents who have built up a reputation for themselves within their local areas. In recent years, many have become involved in co-operative or network affiliations, such as Property Partners, REA Ireland, and Property Team. These co-operative networks have helped independent real estate agents to develop collective marketing campaigns, and share market knowledge, which is vital for success in such a competitive industry. This chapter tracks all of these changes right through to the present day.