The month of May managed to be one of the best months ever in terms of real estate investment in the scope of Gold Visas, despite the state of calamity and the respective restrictions on mobility (national and international), reveals the June monthly report of moving consultant.
Sustaining this increase were Chinese and Brazilian investors (and to a lesser extent, North American, Indian and Turkish) who, by investing in national real estate, seek to ensure the acquisition of safe assets, which guarantee them a high protection against currency devaluations in the their countries of origin (as is likely to be observed in the case of the Brazilian Real) and that allow them to open a window of opportunity, in case there is a need to have access to a safe economic, political and sanitary space, as is the European one, in a global context.
The fact that real estate prices have not undergone any significant fluctuations (largely due to the tranquility that bank default and lay-offs have ensured) and the fact that new solicitations continue at stable levels (contrary to what happened in large numbers) part of the European and North American markets) also contributed, unequivocally, so that national and international investors decided to bet on Portugal.
“The numbers stand out not so much for their size, but for the act of short-circuiting a tendency towards a certain apparent exhaustion that this investment vehicle has shown over the past two years. The question today is to try to anticipate whether the dynamism that we witnessed in May is to maintain. The data tells us not to!”, Anticipates Manuel Braga, CEO of imovendo.
DYNAMISM AT PRE-CRISIS LEVELS, BUT LITTLE SUSTAINABLE
The demand for real estate in the post-confinement phase not only returned to the levels seen in early March, but even surpassed all the metrics that previously occurred. However, the apparent return to normality, stresses Imovendo, does not appear to be sustainable in the medium term due to three types of factors:
- A significant part of demand originated in February and March, having been interrupted by confinement (and this flow tends to decrease relevance);
- Part of the dynamism of the demand for houses or properties with a terrace is related to the ‘trauma’ that confinement has created and whose impact will tend to decrease;
- The economic slowdown and the growth of unemployment will promote, in the coming months, an erosion in the dynamism of real estate.
The behavior of Tourism, the real downward force of the national economy over the past few years, will be the benchmark for seeking to anticipate how the real estate market, in particular, and economic dynamism in general, will recover from an extremely difficult quarter and achieve maintain the high levels of interest and demand that the month of May revealed to exist.
This will be the short-term challenge that will have to be managed, since national real estate, especially over the past two years, has found itself heavily dependent on tourist dynamics, not just as a way of product outlets (within the scope of Local Accommodation), but above all, due to the employability that this sector ensured and that allowed many families to decide to invest in the acquisition of their own housing.