Property investment in Portugal is expected to grow at least 25% in 2018 but “no one would be surprised if it grew 50%, taking into account the first month of the year and some deals that are due to be announced soon”, revealed property consultants JLL.
In other words, 2018 could follow the trend seen in 2017, in which real estate investment grew a record 50%.
The forecast was made by Fernando Ferreira, head of Capital Markets at JLL, during a press conference in Lisbon to present JLL’s half-year report about the tendencies of the Portuguese property market.
He revealed that nearly €2 billion was invested in real estate in Portugal last year, which made 2017 the best year ever, ahead of 2015 when investment numbers reached €1.7 billion.
Ferreira attributed 2017’s success to the “economic situation of the country, which allows investors to look at Portugal with more confidence”.
“In 2017, all sectors, without exception, registered excellent performances and exceeded expectations. Activity was robust in terms of real estate occupation and investment, and promotion was also dynamic at a time when the country’s popularity was at an all-time high, with more tourists and unprecedented prizes,” he said.
“Add to this the improvement of the economy and Portugal’s improved ratings by international agencies, and the perfect conditions were aligned. The country and the market have known how to take advantage of this.”
He also highlighted the many commercial property deals that went ahead, which have continued into 2018 (click here), as well as the strong spending power of international investors who look to Portugal with “optimism”.
According to JLL, 2017 helped Portugal establish itself as a “destination for international investment”, as 80% of the money invested came from foreigners, many of whom choosing to move here.
Pedro Lancastre, JLL’s managing director in Portugal, believes the positive tendency will continue in 2018.
“Demand for offices, homes and retail will remain strong, driven by foreigners who have more varied motives to invest as well as Portuguese who have more money to spend,” he said, adding that the year is already off to a “very strong start”.