PORTUGAL LAUNCHES PROPOSAL TO CREATE REITS UNTIL THE END OF THE YEAR

PORTUGAL LAUNCHES PROPOSAL TO CREATE REITS UNTIL THE END OF THE YEAR

 

The minister spoke during the event opening, which is taking place this week, organized by Iberian Property in Estoril, where he stated that the country "needs long-term investment to meet the existing demand". He assured that "in a short time we need to have legislation for investment vehicles that can intervene in the rental market. The economy needs this and needs to improve the conditions for long-term investment."

One of the great concerns of Siza Vieira is precisely the satisfaction of the demand for houses. “Prices continue to rise because construction investment is still very low, at 40% of 2001 levels and at 50% of 1995 levels. It shows that the investment is still not enough for the demand that exists. Therefore, we need more investment in houses, and to be sure that we increase the stock of middle-class houses for the Portuguese”.

Declaring that the specifications are currently being studied, he has just said that these REITs (Real Estate Investment Trust) can only hold real estate for a long period of time dedicated to renting (not only residential, but also office or logistics). The vehicle, similar to the Spanish SOCIMIs, allows investors to apply their savings in real estate, with a guarantee of liquidity and return on investment, since these companies distribute between 80% and 90% of their profits as dividends.

According to the minister, "the Portuguese economy is strong, we see a strong GDP growth driven by investment. There is real investment in the country." Given this context in which the Portugal Real Estate Summit is held, he concluded that he expects investors to "convince themselves that this is a great country to visit and invest."

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