According to the Portuguese Investment Property Survey (PIPS) for the 4th quarter of 2023, there is a reduction in the weight of Lisbon in new projects in the portfolio - from 52% in the 3rd quarter to 41% in the 4th quarter - and an increase in intentions for investment in peripheral areas of Greater Lisbon - from 30% to 44%.
The report, an initiative by Confidencial Imobiliário and the Portuguese Association of Real Estate Developers and Investors based on consultation with the main real estate developers, also reveals a loss in the share of developments aimed at international demand - from 24% in the 3rd quarter to 18% in the 4th quarter. Projects for national and international buyers also lost importance (from 52% to 38%), but those targeting the domestic market accounted for 44% of new projects in the 4th quarter, compared to 24% in the 3rd quarter.
This redirection of supply is due to "greater confidence in the evolution of macroeconomic indicators, in a context of slowing inflation and a possible inflection in the rise in interest rates", concludes the PIPS for the 4th quarter of 2023. Ricardo Guimarães, director of Confidencial Imobiliário, considers that “this new pattern represents a return to the record that the market was observing before the increase in interest rates, which led to operators taking refuge in the more resilient “prime” markets”.
If there was a middle class in Portugal.
Portugal is the most unequal country in EU. You are either poor or very rich. Not much in the middle.
By Robert from Beiras on 18 Feb 2024, 09:17