Foreigners invest in security of Portugal despite warnings of 'bubble' – The Economic Journal

Foreigners invest in security of Portugal despite warnings of 'bubble' - The Economic Journal


Foreign investors are increasingly dominating the real estate sector in Portugal, and by the end of the first half of 2018, they came to be worth about 82% of the total investors in the sector. This is despite the fact that there are more and more warnings about the danger of a real estate 'bubble' in the country. The weight of foreign investment in national real estate was highlighted in SIL Investment Pro, which served as launch for the 21st edition of the Portuguese Real Estate Exhibition, which will run until next Sunday, October 7, at the Lisbon International Fair (FIL ).

Pedro Seabra, a member of Explorer Investments, an independent asset management company, was one of the speakers at this event and said that foreign investors choose Portugal to carry out their business as "a safe country to invest, with growth potential where the market is attractive and will consolidate even more institutional investment ", highlighting" several international promoters from Spain and France wanting to make real estate promotions in Portugal. " Pedro Seabra, affirms that "we have had the small investor who has been the great engine of this growth in recent years", but there is also "an investor who is looking for risk to develop real estate, as the investor who seeks a safe and secure investment long term".

Rui Meneses Ferreira, a member of the Kronos investment group, also made a presence as a speaker, summing up in a word, what a foreign investor is looking for in Portugal, what he is looking for anywhere else in the world: "profitability" factors such as "the market, access to credit and to be competitive in the product we make." This manager specifically addressed the national market, explaining that "when we speak of the real estate industry in Portugal we must align and keep in mind a set of factors that do not come only from the market and its dynamics, but where there are a set of factors that contribute positively or negatively to be competitive. " "This is something we should measure periodically," said Rui Meneses Ferreira.

In turn, Pedro Seabra, finds some differences in Portugal, compared to the last years. "For example, in tourism we are seen today as a luxury destination, something we were not before," he points out. Already the Kronos partner sees a "different country, but not" a different sector ". "The developers and builders have disappeared, which is a risk at the moment for our activity. It is impossible to build at the price that the Portuguese want to buy. It is a cost of production that does not exist, "says Rui Meneses Ferreira, while pointing to new objectives. "There are challenges from this standpoint of meeting today, who builds at a competitive price. There are challenges where the product is different and people naturally look for demanding products, but there are things that work the other way around. There is a lot to work on from the point of view of the product, in order to have a more competitive and customer-driven product, which is the only way to be competitive, "he said.

Article originally published in print edition of October 4, 2018



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