Purplebricks Group PLC (LON:PURP) will formally launch its business in the US later today, kicking off in Los Angeles the hybrid estate agent will then extend across the state of California and other targeted key states thereafter.
In a statement, the AIM-listed group said this is in line with the region by region rollout successfully adopted for entry in the UK and Australian markets.
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The firm said California is the natural launching point for its US expansion, as it is the sixth largest economy in the world by GDP and the leading US state in terms of both number of annual real estate transactions and estimated commission income of US$12bn per annum.
It noted that although California, at 12.6mln households has less than half the UK equivalent, the level of commission income in California is more than double that of the UK.
Purplebricks said its platform and customer offering has undergone a transformation to meet the intricacies of the US market, using a combination of Local Real Estate Experts (LREEs) and technology.
The group previously successfully adapted its technology and customer offering with its launch into Australia in 2016.
“Single biggest moment in the company's three-year history”
Michael Bruce, Purplebricks’ group CEO, said: "Launching Purplebricks today in the US is the single biggest moment in the Company's three-year history”.
He added: “ We are excited about the opportunity, in this US$70bn market, while mindful of the challenges.”
The CEO continued: “As we rollout across California and beyond we will closely monitor progress and have the capability to further quickly and efficiently refine our model, if and where necessary.”
He concluded: “Purplebricks is now in three continents in just over three years. We are confident that we are leading irreversible change in the industry and that we are best placed to realise the future global opportunity."