According to 77% of agents surveyed in the Portuguese Real Estate Investment Survey study, the investment will continue to be a priority for the sector. They believe that the investment will have the biggest impact on the sector this year, besides the entry of new players in the market.
“The agents of the sector finished last year with a feeling of great confidence and are with high expectations regarding this year. We have reason to believe that this good moment will go on and that Portugal will keep being attractive for both domestic and foreign investors.”
Jorge Marrão, Partner and Real Estate Leader of Deloitte Portugal
Value-added will be the preferred assets
Most of the players surveyed expect to increase their portfolio by more than 10% and point to value-added assets as the preferred investment option, followed by core assets and opportunistic deals.
In 2019, Value Added assets will be the target of greater investment by real estate agents and the hotel industry, offices and retail stand out as preferred sectors for investment.
This year, an increase in volume and transaction prices in the industrial sector is expected, as well as greater stability in the residential, commercial and hotel sectors. Greater stability of rates of return in the various sectors analyzed, is expected and may even fall in the case of housing and industry.
On the other hand, for 54% of respondents, bureaucracy will be one of the main obstacles to investing in Portugal 2019, in addition to fiscal policy, which concerns 85% of the respondents.
Pension funds will be the main buyers
At the level of divestment strategy, core assets and opportunistic deals will be the main targets for 31% of the respondents, in addition to offices, industrial assets and residential.
Pension funds (62%) and mutual funds (46%) are the main buyers of real estate, and Europe (92%), North America (46%) and Asia (46%) stand out as being the origin of the main investors. According to the agents of the sector, raising funds for investment will not increase the difficulty and the process of acquiring real estate assets will last between three to six months.
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Source: Deloitte
August 25, 2019
