Considered the most important real estate investment forum of the Iberian Peninsula, the Portugal Real Estate Summit was held from September 18 to 19, and welcomed investors from 20 countries of the 5 continents, including from China, Australia, South Africa or the United States , representing 200 different entities, from family offices, private equity, pension funds, real estate funds, REIT's, insurance companies or investment banking, or from leaders in the areas of development, hospitality, consulting, investment management, law or architecture.
REITs in Portugal by the end of the year
One of the high moments of the event was the announcement of draft law creation to build a REITs regime in Portugal by the end of this year, as promised by the Deputy Minister, Pedro Siza Vieira, who opened the event on September 18.
The executive believes that the country "needs long-term investment to meet 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 improving the conditions for long-term investment."
The challenges of "California of Europe"
"The idea that Portugal is a good country to live is finally on the table. This is the new California of Europe, with welcoming people like no other in Europe," said Pedro Santa Clara of the Nova School of Business and Economics and Chairman of the Alfredo Sousa Foundation. In his experience, the student market, a new segment of the booming market, "can become a large and long-term industry if we can attract these communities and make use of their networks."
After the worst years of the crisis, experts agree that the country has a growing economy and is more resistant to any less positive external economic impact. Climate, safety, direct flights or human resources and infrastructures attract more and more investors and companies, experts in several sectors, which are setting in Lisbon and Porto but also in other cities, such as Braga or Coimbra and Aveiro. However, they request attention to the legislative changes, as they seek, above all, predictability and security for their business, so that Portugal maintains its increasing attractiveness.
Another of the most frequent points of the discussion was the pressure on housing in the main Portuguese cities. A demand that far exceeds the offer, places the prices high and accessible only for some, and this is already being felt in multinationals that want to set up in our country, like Fujitsu, which employs more than 60 nationalities in Portugal. "We have to think about how we can satisfy a mostly millennial workforce. Lisbon can no longer be attractive to talent if the housing problem is not solved," explained José Miguel Pinto, Fujitsu's Head of Service, thus calling into question not only the residential market but also the office market.
On the other hand, for investors and experts, this is a business opportunity, namely in the construction of new housing stock for the middle class and for Portuguese. There are also new business segments, such as senior residences or for students, whose demand also continues to increase without finding adequate supply in quantity or quality. Pedro Silveira, Chairman of the SIL Group, believes that “there is a lot of market to continue constructing at €3,000 and €4,000 per square meter, not at €10,000”.