Casavo is set to exit the Portuguese market just one year after landing in Lisbon.
Fresh off the news that the Italy-based iBuyer has cut 30% of jobs and downsized its iBuying activity, Casavo will instead focus on core markets.
In last week's open letter, CEO Giorgio Tinacci stated that Casavo will suspend business generation in "unprofitable or low scale markets"— the assumption is that Portugal falls into this category.
Casavo entered the Portuguese market in January 2022 with plans to hire local employees and spend up to €100M buying properties in Lisbon—of which 20 are currently listed on its Portuguese marketplace.
The company uses a dynamic pricing model to evaluate the profit potential for properties on the market, then buys, renovates and sells the most valuable properties for a profit.
But with a high-profile failure in the form of US giant Zillow, which closed its iBuying business in November 2021, the next question is—how will Casavo do things differently?