Real estate market trends are always changing. The current trend is all about the increasing demand for property. And that has been true for the past years.
But now, what about 2022? What will be happening in real estate in Portugal during this year?
The first thing you should know about Portugal’s real estate market is that it has been highly influenced mainly in the urban areas by property investments done by foreigners, whether through residency through investment, or citizenship by investment.
The pace the sector has experienced during these last years has been quite impressive and the number of transactions has increased considerably.
But we can also say that the local Portuguese population has become more aware of the benefits of investing in property.
This awareness has led to a growing interest from both domestic and foreign investors.
Where is the Portuguese real estate market heading?
Growth trends that will surprise
2022 should be a year when we should be prepared for surprises. Such expected trends will surprise by their speed and impact on the real estate sector.
Commitments to sustainability in real estate will accelerate, both from landlords and from banks, insurers, and investment committees.
Each country has its own office culture.
The pandemic has changed the rules of the game in many aspects of our daily lives: how and where we work, shop and live. Some changes, different consequences for real estate investors, especially the prospect that the hybrid working model will be imposed in the future.
This trend is a challenge for the office sector, both in terms of quantity and distribution. However, there is no uniform trend, and opportunities vary greatly between countries and regions, as they depend on cultural, geographical, and also economic factors.
The differences in profitability among different types of real estate assets can be quite significant.
The various real estate assets are expected to adjust their yields. Logistics will no longer perform better than the market average, and retail worse than average.
Yet, another year of economic uncertainty
One of the keys to the coming year is the global economic environment and warns that after two years of the pandemic, and although the outlook is less gloomy, nothing is certain. In fact, international organizations are revising their forecasts downward.
What are the changes?
From January 1st, 2022, investment in residential real estate in Greater Lisbon (including Cascais, Estoril, and Sintra) and Porto will no longer qualify for the Golden Visa.
What are the exceptions?
The Algarve will also be impacted, but some parts are exempt from the changes, and tourist complexes – including resorts with residences, villas, and apartments and villas – are also spared.
What are your goals?
Define your short to long-term goals. Benefiting from a specialist immigration company can provide valuable advice to investors seeking Portuguese residency – via the Golden Visa and other methods.
What are the key trends in property development?
A major factor is the removal of Greater Lisbon, Porto, and much of the Algarve from the Golden Visa program in 2022, in a drive to shift investment towards Portugal’s interior, lower-density population areas.
What’s next for Portugal?
Over the next few years, the Portuguese property market is expected to experience far-reaching changes.