The demand for properties over one million euros continues to win over buyers. The number of transactions recorded in the first quarter of the year is already in line with transactions carried out in the years leading up to the pandemic. The guarantee for Nascer do SOL was provided by Patricia Barao, Head of Housing at JLL, stressing that the segment “has grown systematically since 2016, and although it declined in percentage terms last year as a result of the pandemic as a result of the pandemic, in the first quarter. already showing values ​​corresponding to weight in dock years, which demonstrates the resilience of this sector. ” And given this scenario, he has no doubts: “This year we will have one of the best years in history. Demand is strong, the residential market has shown resilience to the test, and it has been an outstanding year in line with pre-covid performance. “

Contrary to what one might expect, local buyers dominate the purchase of this type of property. In the first three months of the year, the national market accounted for more than 80% of the sales made according to the reports of the responsible persons. But given the average sales ratio, the national market has a weight of 60% and the international market 40%. “We are an international consultant, therefore we work very actively with the international market, where we sell real estate to 45 nationalities. Brazilians, French, Chinese and British stand out, ”says Patricia Barao.

But what is the secret of these transactions? The head of Residential JLL explains: “There is a strong demand for specialty properties where there is little supply. Usually these are unique apartments of a new project, penthouses, houses with special elements such as large outdoor areas or private pools, which are of greater demand and the highest values, and where we sometimes have more than one client for the same property. »And our newspaper recognizes that Portugal is increasingly becoming a developing country in Europe in real estate, targeting a more exclusive audience. “The market in which we operate at JLL – medium / high – has been very active and we have sold more properties with higher value than in previous years.”

Consequently, most of the offer is sold before it is completed, that is, at the factory. In fact, one of the specialist consultants. “We believe that the main reason for having potential in plant sales is that at this stage you have growth potential in the purchase. There is a lot of demand and little supply at the plant, so purchases at the plant are of great interest to both local and foreign customers, ”says Patricia Barao.

An opinion shared by the President of the Association of Real Estate Professionals and Intermediaries of Portugal (APEMIP), which ensures that the fact that many projects are sold without completion is due to the confidence of investors, developers and, above all, in the expectation of future value. “There are investors who want to secure the purchase of a project that is still under development, both for new construction and for rehabilitation. In addition, whoever buys the plant wants to have assurances that it is making a good long-term investment, ”says Paulo Cayado in an interview with Nascer do SOL.

But the “secrets” don’t end there. “The premium market is characterized not only by the value of a property unit, but also by the characteristics and services they offer. Whether it is a unique or privileged location, views (river, sea or city), leading architects, high ceilings or finishes exceeding normal standards, amenities for pools, gardens, paddle courts, spas, gyms, areas for children and such services as a security guard and / or concierge, ”adds Patricia Barao (see page 55).

However, the responsible authority acknowledges that the real estate sector was not indifferent to the effects of periods of imprisonment, which, despite all the restrictions that arose as a result, ultimately led to real estate activities. “But almost a year later, the market showed resilience and returned to extraordinary activity in line with 2019 levels.”

“Luxury stands up to the challenge”

Despite admitting that the pandemic has affected the luxury goods market, as some of the clients in this segment are foreigners and therefore their mobility has remained unchanged for a long time, the President of APEMIP acknowledges that “the luxury goods market was governed. to face the challenges, “and recalls that” as soon as the prospect of vaccination appeared, this segment regained its momentum. “Expectations for the future are good because people are still not moving like in 2018 and 2019.”

Paulo Cayado, however, says that there are few offers of properties that are very expensive compared to others, and “it happens that these higher value properties are being taken over by investors.” But he leaves a warning: “This does not mean that the more expensive the property, the faster it is sold.”
For the person in charge, the prospects are encouraging. “I believe that the residential real estate market has shown a positive upward trend in recent months. In the first quarter of 2021, between January and March, home sales were € 6.9 billion, up 2.5% over the same period in 2020. Of this amount, approximately 5.6 billion euros are for existing housing and 1.2 billion euros. billion euros for deals on the new placement ”. And given this scenario, there is no room for doubt: “The trend is that 2021 will continue to be a year of significant growth in the real estate market.”

It is true that the pandemic has left its mark on this market, driven by a slowdown in demand. According to the president of APEMIP, “demand for housing slowed during the initial phase of the pandemic, mainly due to the uncertainty that arose,” but he guarantees that “over the past few months, it has resumed, proving that property values ​​have a very solid component. People thought more about their real housing needs and, as a result, the number of transactions increased. The pandemic has also shown that people are much more choosy before buying a house, ”he says to Nasser do SOL.

Paulo Cayado ensures that “investing in real estate in Portugal is still a good business, especially when looking at the market in the long term.” But let’s move on to the numbers. The official says the vast majority of buyers are Portuguese and, using the latest figures released by INE and analyzed by the APEMIP Research Office, “230,776 properties were sold, indicating that only 19,520 properties (8.5%) were acquired by other persons. -residents.

race to a new job

“There is a great demand for new buildings.” The guarantee for Nascer do SOL was given by Ricardo Sousa, CEO of Century 21 Portugal, and he reminds that “in addition, the purchase of the plant also gives access to progressive payment terms, which are very much appreciated by the Portuguese”. In fact, the official admits that “the Portuguese dominate all segments of the national real estate market,” which “records a very high level of demand.”

According to the official, there is no doubt: “The residential real estate market has shown high resilience to the pandemic, which also caused the need for new housing for the Portuguese. Given the conservative profile of the Portuguese in terms of investment and with the increase in the level of savings of the population, the housing market has become the main option for investment. ”

With regard to the luxury goods market, Ricardo Sousa guarantees that “it has a very specific dynamic, inelastic in relation to short-term dynamics,” while in relation to the traditional market it is determined by low interest rates, excess liquidity in the market and the growth of new mortgage transactions. and the fact that 45% of Portuguese want to change their homes as a result of the pandemic.

“These facts and indicators that we are capturing in the real estate market give us confidence that this trend will continue in 2022, and with the increase in household savings, the housing market has become the main option for investment,” he adds. to our magazine.

MaxGroup, part of the Remax group, also mentioned that after the arrest, there was an increase in demand for luxury properties from foreign buyers, which ensured that demand spread throughout Portugal, despite the fact that Lisbon was the city of choice.

“To live or invest, Lisbon continues to be a very attractive city and increasingly attracts buyers from all over the world. These real estate clients are now positioned in the luxury segment and see Lisbon as a set of factors that drive them to make their purchase, ”he said.

Among the selection criteria for foreigners is the price, “as Lisbon continues to be one of the European capitals with reference values ​​lower than in Europe.” But there are other factors as well, such as security, climate, tax breaks promoted by the protocols between Portugal and its countries of origin, as well as the history, light and typicality of the capital.

X-ray

It is true that major international fortunes have turned their gaze to the Portuguese real estate market, more specifically to luxury homes. The conclusion is based on the research of an idealist who analyzes the international origins of research on properties for sale in Portugal worth over € 1 million. However, he admits that there are some countries that show a particular interest in luxury real estate in our country: the Spaniards (11.7%) conduct the most searches of this type, followed by the British (11.6%), North Americans. (9.7%), French (9.5%) and Germans (8.9%).

This international interest in luxury real estate in Portugal is mainly concentrated in six districts, accounting for 88.8% of visitors looking for luxury real estate for sale in the country. Disaggregated data shows that Lisbon is a preferred area for foreign investors, as this area is home to 40% of international searches for luxury real estate. The main interests of this luxury item are Spaniards (13%), North Americans (11.1%), British (10.8%), Brazilians (10.4%) and French (7.1%).

Of the six areas of greatest interest to high-end buyers, Faro is in the ranking, with 28% of the luxury goods polls conducted by foreigners. The nationalities most looking for luxury homes in the Algarve are English (12.9%), Dutch (11.5%), French (10.5%), Germans and Spanish (10% each).

The third place in the ranking is occupied by Setubal with 8% of searches. Countries that showed more interest in this district are Germany (15.1%), Spain (14.1%), UK (11.7%), France (10.5%) and the USA (7.6%) …

The Porto area ranks fourth with 6% of luxury polls conducted by foreigners. The Spaniards showed the greatest interest with 13.6% of visits. This is followed by Brazilians (12.5%), French (11.9%), North Americans (11.2%) and British (7.5%).

The fifth place is occupied by the island of Madeira, which accounts for 4% of searches for luxury goods carried out in Portugal by foreigners. The most active in searches are the British (21.1%) and Germans (20.9%), followed by North Americans (5.4%), Swiss (4.6%) and French with 4.3% of searches.

Finally, in sixth place in the ranking is the Braga district with 2% of the polls. The greatest interest in the area was shown by the French (25.7%), followed by the Brazilians (12%), the Swiss (10.5%), the Spaniards (10.0%) and the British (8.3%).

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Oscar Roche infographics