2018 must repeat the “good time” of the real estate market
The expectations of the real estate industry are optimistic, although some challenges are already identified so that the positive cycle can continue. Housing is considered one of the most important areas in the coming years.
The sentiment of the real estate industry for next year is one of optimism, with top industry leaders confirming that the market is experiencing a very positive time. “The period for real estate is good,” said Henrique Polignac de Barros, president of APPII, the association of developers and real estate investors, at a breakfast promoted by Vida Imobiliária and Cushman & Wakefield (C & W) to prospect 2018. The times are a “delightful monotony,” said Paulo Silva, who heads ACAI (representing real estate appraisal and consulting firms), while Manuel Puerta da Costa, who heads the APAF (Financial Analysts Association) explained that ” market was not even equated to about 3 years ago, either in terms of price behavior or in transactional volumes, “underlining the importance of the real estate sector” in the national capital stock “, which” is crucial for sustainability and profitability from the country”. Veiga Sarmento, who presides over APFIPP (Investment Funds Association) confirms that “the winds are optimistic” and that Portugal benefits from the optimism that is lived in Europe, “an optimism like it has not been lived for a long time.”
Commenting on the main conclusions of this meeting, José Araújo, director of the Millennium bcp Real Estate Business Division, further extends the positive course, noting that “in the Bank’s real estate area, we have seen a growing demand in the real estate market since 2011 “.
Extend the cycle
The real estate industry believes that it is possible to “extend” this positive cycle. “We have to extend the good cycles,” said Polignac de Barros at the time, arguing that, to this end, “certain measures must be brought forward.” To “take advantage of this positive tide, we must take into account some concerns,” aligns Veiga Sarmento.
One of the challenges identified by the industry is the response to the lack of housing and office supply. “There is a clear gap between the available stock and the occupation,” said Eric van Leuven, managing partner of C & W, explaining that in the case of housing the issue is especially relevant to nationals.
As for the offices, “it is necessary to invest in new spaces, so that companies continue to install and create wealth”, he warns, stressing that stock limitation can be a threat to Portugal’s competitiveness at a time when international companies look at each more to the country. In addition, “without offices there are no cities,” said Pedro Ló, of APFM (facility management association).
Reinforcing investment in the rental market as a solution for access to housing is also one of the challenges to be addressed, because “the current moment has been mainly positive only for the buying and selling market and the housing market,” he recalls. said Menezes Leitões, of the ALP (association of owners).
Also the attraction of private investors to the real estate is on the map. “We have to be able to capture savings and real estate investment funds can be a crucial lever for raising private investment for real estate,” Veiga Sarmento notes. Increasing confidence in the industry, both through self-regulation and through improved standards of professional rigor, is also on the agenda. In José Araújo’s view, “not to hurry the return of investment, buy well and build for nationals and accept one-digit profitability” may be the revenue “not to hasten the reversal of a major cycle for the national economy and sector” .
Housing is a central issue
Housing will be “the most important issue for real estate in the coming years”, in the words of Francisco Rocha Antunes, president of RICS (entity that acts in the implementation of good practices in the real estate industry). First of all, because “it is necessary to realize how to create housing that is not only an investment of refuge from international buyers”: In addition, it is necessary to boost the rental market, defended Menezes Leitão. “At the moment we do not have people putting new houses in the rental market, and this is something that has not happened even in the worst moments,” notes the ALP president with concern. For Francisco Rocha Antunes it is clear that “there is a lack of an institutional investment market in residential leasing in our country”.
As for prices, it was pointed out that, at the national level, average values are only reaching near the previous peak of the market, although in the highest market range (only), the values currently practiced in Lisbon and Porto reach today a level practically unimaginable ten years ago.
Source: “Public Property”