Business slowed down but did not stop entirely in Portuguese real estate. Portugal continues to be 'well-listed' on an international scale and almost every day there are requests for information on how to invest in the real estate market.
The opening of a store of the luxury brand Dolce & Gabanna, in the first week of May, on Avenida da Liberdade, in the centre of Lisbon, was just another sign. The country was beginning to lose its edge and businesswoman Paula Amorim, the promoter of that commercial investment, showed that the real estate (and fashion) business had not stopped with the pandemic.
Not only did they not stop - an example of which is what Paula Amorim has in progress at Comporta, with French investor Claude Berda - but since the declaration of the pandemic state until the end of this week, real estate projects have been invested or launched in Portugal worth more than EUR 1.3 billion.
Real estate already moves EUR 30 billion per year
The vice-president of APPII uses more numbers to support the importance of the sector and ensures that it moves close to EUR 30 billion per year, the equivalent of 15% of gross domestic product. He also admits that real estate is growing 20% per year, both in investment volume and number of transactions.
The association that brings together the main investors in the sector does not yet have consolidated figures for the first half of this year, but it is certain that there has been a significant drop in real estate sales, but not so much in terms of the promotion of new projects.
Investment via Golden Visa does not want to go inland
As far as the Golden Visa concession is concerned, the data clearly indicate that there is a clear preference for Lisbon, Porto and the Algarve (close to 97% of the total). Regarding the announced obligation - not yet implemented - for Golden Visa to be directed to the interior "we must be realistic. The investment goes where there is less risk and where there is a critical mass, market volume. And this is not in the interior of the country. If investors feel obliged to do what they don't want, they'll naturally leave for another country. You can't take capital where it doesn't want to go."
One of the possible ways of attracting property investment to the interior is, according to APPII's leader, "for municipalities to make their territory more attractive. Some have already done so and with results".
Overall, the country, by the way, it has dealt with the health crisis since the beginning of the pandemic and also by the image it has projected abroad, ended up generating confidence among investors and the financial markets. The vice-president of APPII considers that "the liquidity that exists has to be channelled somewhere, so if the Portuguese market remains attractive, consistent, credible and safe, the money will come naturally.
This is the only way to explain that, even in the face of the adversity of the pandemic, dozens of new real estate projects have been launched in the Portuguese market and promoted internationally "successfully.
30 billion is the amount moved annually by the real estate sector, a value equivalent to 15% of the Portuguese Gross Domestic Product
20% per year is how much the real estate sector has grown both in the volume of investments and the number of transactions
7 billion may be on its way to the national real estate market, according to a C&W survey
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