"Portuguese real estate market will cool down due to lack of supply in 2020" : the president of the association of professionals and real estate companies in Portugal takes stock
After the boom, the Portuguese real estate market will cool down in 2020: the president of professionals in the real estate sector says so. He thinks it is necessary to adapt the offer to the needs of the market. Luís Lima, president of the Association of Professionals and Real Estate Companies of Portugal (APEMIP), gives this interview translated from the site dinehirovivo.pt
"Portuguese real estate market will cool down due to lack of supply in 2020" : the president of the association of professionals and real estate companies in Portugal takes stock
What is your assessment of real estate activity in Portugal in 2019?
Despite the slight cooling in the market, the year was positive. According to official data from the APEMIP design office, 45,830 family homes were sold in the third quarter of 2019, an increase of 7.6% compared to the previous quarter. Compared to 2018, there is a slight decrease of 0.2%.
In contrast, the value of family home sales increased 6.6% from the previous quarter and 3% from the same period of the previous year. From January to September, 132,246 real estate properties were exchanged, which corresponds to an almost zero variation from one year to the next. In terms of sales value, there was an increase of 4.3%.
What are the main expectations of APEMIP for 2020?
The Portuguese property market is expected to experience a slowdown, driven by a lack of inventory, which prevents an effective response to existing demand in the buying and selling and leasing markets.
Although there are goods that are unoccupied, the fact that they are not on the market or do not meet demand, they cannot be considered in the existing stock. The little that is marketed is often sold at prices higher than what would be desirable and bearable for the young and the middle class. The increase in prices justifies the cooling, because even those who have greater financial capacity and want to invest, will retract because of the high prices.
The lack of supply will cool down Portuguese real estate market
What changes can occur ?
Given the difficulties faced by Portuguese youth and families in accessing mortgage loans, there will be an upward trend in the urban rental market, which unfortunately is unable to respond as it also has not enough supply. The main change will be related to the new incentives for affordable rental.
What would you like to see happen on the housing market in 2020 in Portugal?
I would like young people and families from the lower and middle classes to find answers to their housing needs. The main challenge remains the need to introduce an affordable offer, which is becoming increasingly difficult, also taking into account construction prices, which prevent assets from being traded at prices that young people and families can afford. afford to pay. The answer may be through public-private partnerships, between municipalities and builders, with land grants and guarantees for buy-back of affordable real estate, or by trying to seek out foreign investors, build on a large scale and so ensure an increased supply at affordable prices.