Anticipating an 8.4% fall in prices, property developers in Portugal argue that in order for the property market to recover from the crisis, certain measures, such as tax cuts, should be implemented
Portuguese real estate was one of the sectors hit by the crisis caused by the coronavirus and most believe that recovery will only be possible from next year onwards. But for this recovery to take place more easily and quickly, the real estate sector argues that some measures should be implemented, including discounts on some taxes and a bet on the international market.
The impacts are being felt and, as far as prices are concerned, there have already been decreases in recent months and will continue to do so in the next 12 months, concluded the Portuguese Investment Property Survey, conducted by Confidencial Imobiliário. Real estate developers believe that prices will fall 8.4%, while transactions will fall 15.7%.
However, even with these effects, most developers have no intention of stopping projects already under construction and few intend to lower the selling price to maintain demand. Instead, the strategy will be to resort to virtual visits to properties and delay projects that are still under licensing.
Analysing all the impacts, the survey concluded, the economic framework is seen as the main obstacle to the sector, but also the bureaucracy in the licensing processes. But, in addition, developers believe that measures should be adopted that will facilitate and accelerate the recovery of the real estate market in Portugal.
Thus, they argue that a decrease in construction VAT to 6% is the most important measure at the moment, as well as the relaunch of the Gold Visa programme in order to attract foreign investment. In addition, developers are asking for more temporary exemptions from some taxes and the possibility of carrying out deeds online.
Read the original portuguese article here.