Portugal's real estate continues to raise interest from international investors

Thu 28 May 2020

Portuguese real estate is not expected to record major price falls in the coming months, bearing in mind that Portugal is attracting the interest of international investors, according to the chairman of AICCOPN.

Portuguese real estate is not expected to record major price falls in the coming months, taking into account that "Portugal continues to be a destination of excellence" and arouses interest from international investors, according to the chairman of AICCOPN.

During a webinar, organized by the Order of Engineers, Manuel Reis Campos, who leads AICCOPN (Association of Industrialists of Civil Construction and Public Works) and the CPCI (Portuguese Confederation of Construction and Real Estate), showed confidence in the evolution of real estate prices in Portugal, despite the paralysis of activity, motivated by the Covid-19 pandemic.

"Portugal continues to be a destination of excellence", he assured, pointing out that the "mediators could not do their job and were confined to see what the situation was. The pandemic in Portugal had no significant effects," he said.

I'm aware that there are countries that, as long as this slows down [the pandemic], have citizens interested in investing," Reis Campos said.

"I have always been against the excessive climate around prices, with the speculation that exists in Lisbon and Porto", he said, reserving that the fall in prices will not occur on a large scale. Even so, this "does not mean that there is no business opportunity, with price stabilization, as there was in the last months of last year", he concluded.

Reis Campos also recalled that the real estate and construction sector was, in 2019, "in a new cycle of growth".

The public works tenders held in 2019 totalled 3,992 million euros, reflecting an increase of 50% compared to 2018, this being the largest year-on-year increase since 2011, according to data published by AICCOPN in January.

The construction and rehabilitation work on residential buildings licensed by the municipal councils last year "increased by 9.4% over the previous year to 16,461, with the number of homes licensed in new buildings totalling 23,737, as a result of a year-on-year increase of 17.2%", stated the entity in February.

Reis Campos recalled that during the confinement, infrastructures did not stop, "such as the maintenance of buildings, water, sanitation, communication and electricity networks".

"And we are sure that if the real estate sector did not work it would be an absolute disgrace," bearing in mind that it represents 493 million euros in monthly wage bill, he said.

Reis Campos also highlighted the need for labour in the sector, which can help absorb some unemployment. "We are in a privileged situation to hire workers," he said.

For the associative leader, it is also fundamental to execute programs such as PETI 3+ or Portugal 2020, which can be an oxygen balloon for the sector. "We need to give substance to what is important, to small and medium works, to the removal of asbestos, as well as those in the area of the environment, energy, climate change, health, urban rehabilitation", he stressed.

"Durability is the keyword for the future of construction. We are always talking about prices and we must have reference prices in the sector. We cannot have prices that then lead to deserted tenders, that do not reach competitiveness values. The sector needs to train companies and workers, as well as engineers and universities," concluded the president of AICCOPN.

Read the original Portuguese article here

Photo by Suad Kamardeen on Unsplash

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