MVGM, experienced in managing real estate management on 10 countries, produced a report with insights on the main effects the pandemic had on the several real estate segments across Europe.
According to the report, the Portuguese housing market was able to resist the pandemic and rental gained ground, with a great pressure over rents. Within the two metropolitan cities, Lisbon and Porto, around 15% of the houses migrated towards the traditional rental market and, on a national level, there was a 67% increase within the rental market, which represents approximately 43.000 new dwellings available for rental. Despite the slight reduction to the rents value, real estate acquisition value increased slightly during 2020.
«The results of this report reinforce our belief that this is the ideal moment to revitalize the rental market in Portugal, especially using the model «build to rent». A more dynamic market may, on the long-term, cause cities to have more inhabitants and to expand», highlighted Miguel Kreiseler, Managing Director at MVGM Portugal. «With more build-to-rent projects, MVGM is focused on guaranteeing a strict and professional management of this new dynamic which is starting to appear within the Portuguese housing market», he added.
Logistics stood out during year of hardship
In terms of offices, 2020 was a difficult year for investors and the companies which occupied those spaces. Work from home accelerated the buildings’ eviction and led owners to accept price adjustments to support their tenants. Within this segment, it is expected that, as rental contracts expire, tenants will seek to reduce the areas occupied within these buildings or to transform them in more adequate spaces adapted to their companies’ current needs.
The logistic segment contrasts the trends and, according to MVGM, was the best segment at bypassing the crisis, due to the fact that it constitutes a fundamental element for companies’ adaptation during confinement, thanks to the growing importance of online commerce.
Lastly, concerning the shopping centres, MVGM revealed that, on average, circulation in these areas decreased around 30% and sales 25% in 2020, which reinforces the need to find solutions so as to keep sales and jobs.
For Miguel Kreiseler, «the pandemic brought unprecedented challenges to shopping centres and the companies in charge of their management. Rethinking the nature of its function and the purpose of these spaces will be fundamental to keep them attractive for visitors and profitable for owners, through new occupancy models».
He questioned: «What if shopping centres gained a new purpose? Is it necessary to increase resilience so that these spaces are capable of reacting and following change when necessary, as was the case with Covid-19», concluded MVGM’s Managing Director concluded.