More than 80% of real estate companies recorded declines in transactions and in the demand for properties in January, in year-on-year terms.
More than 70% report a decrease in these indicators compared to the previous month, according to a survey by the sectoral association.
In a statement released today, the Association of Real Estate Professionals and Companies of Portugal (APEMIP) considers that “These figures are discouraging and portray the consequences of the confinement that came into force on January 15th, preventing real estate companies from carrying out their activities normally, as they are unable to make face-to-face visits”.
According to the conclusions of the APEMIP Barometer – January 2021, carried out with real estate professionals operating in Portugal, comparing the sale of real estate in January with the previous month, 77.4% of respondents confirm a drop in transactions, against 18% that indicate that the business was maintained and 4.6% say that it will have increased.
In comparison with the same period (January 2020), 82.4% point to a break in the business, 13% refer to its maintenance and 4.6% to its increase.
APEMIP notes that “demand also reflects the impact of the pandemic situation”, with 71% of professionals reporting a decrease compared to the previous month, increasing this percentage to 84.8% when the comparison is made with the same period of the year previous.
Cited in the statement, the president of APEMIP considers that, “If last year companies showed some optimism, despite the circumstances, in 2021 the fatigue and the difficulties they face is reflected in the results of this barometer”.
“On the one hand, the drop in demand is beginning to be noticeable, on the other hand, companies continue to be prevented from visiting and developing their activity, which is reflected in their degree of optimism for the performance of this year”, sustains Luís Lima .
According to the associative leader, “61% of the professionals stated that they had never done any business through virtual visits and 15.3% stated that they did not have the means to do so, which proves that this resource serves only very specific niches in the market”.
Pointing out that these figures confirm "the ineffectiveness of virtual visits for the achievement of business", APEMIP calls for the sector to be integrated in the first phase of the lack of definition.
With regard to the prices of the available offer, 62.5% of the respondents pointed to its maintenance, 31.4% to its fall and 6.1% registered an increase compared to the previous month. Compared to the same period last year, 44.9% of respondents say that prices have remained, 37.5% that have decreased and 17.6% that have increased.
For Luís Lima, it is “natural that prices begin to reflect the effects of falling demand and that there are some corrections to the values practiced”, with this phenomenon “being particularly noticeable in the higher housing / luxury segment, which is affected by the fall in foreign demand (62.6% of respondents confirm a drop in this business), since the domestic market does not have as much capacity to absorb this type of assets ”.
Based on an online survey, the APEMIP Barometer – January 2021 took place between February 2nd and 11th, 2021 and had about 4,000 responses from professionals from licensed real estate companies operating in Portugal.