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28 // iberian.propery / 2017
dossier// ISSUE: TOP IBERIAN Investors
Portugal is currently experiencing a propitious
climate for real estate investment. The coun-
try offers economic and geopolitical stability.
Non-residents find pleasant weather, a diverse
landscape and a rich architectural heritagewith
more than 900 years of history in this country.
Entry to the EU and access to the main inter-
national airports is easy.
In recent years, we have watched a significant
part of the international community recognise
Portugal as a real estate destination. There are
many reasons to choose this country: it is easy
to do business; international tourism awards;
safety; excellent transportation and health in-
frastructures; education and quality of life.
Portugal can offer real estate investments to
match the best and most prestigious locations
(south of France) but at lower prices. One can
find high quality, well constructed properties
at competitive prices due to the low liquidity of
the domestic market. The risk of medium term
depreciation is reduced – the country was not
hit by the 2007/2008 speculative bubble.
In terms of taxes, inheritance and endowments
are not taxed to residents and there is a spe-
cial exemption or reduction on income tax for
non-habitual residents.
The combination of all of these factors provides
a quality of life and serenity that places Portugal
as one of the first choices for a permanent or
holiday residence.
The opportunities are great and sustainable in
Portugal, and the time is right.
José António
de Mello
Selecta SGFII
Chairman
Real estate investing is complicated and re-
quires a great deal of expertise to engage prof-
itably in the business. It will keep being so in
Iberia, if not even more arduous, as players get
more sophisticated and markets more populat-
ed of avid investors. Considering that the time of
bargains in Spain and Portugal is over, this adds
to the complexity of developing a successful
approach. Investors looking for a safe haven
for their money in turbulent times in the equity
markets have rapidly priced the best core real
estate assets in the Southern countries at levels
close to those of other European peers, making
it difficult to make certain moves. Thus, more
than ever, expertise, planning and focus are
necessary, alongwith decision taking agility. And
the logical move towards value add strategies
has become almost an obligation.
Real estate fundamentals continue to steadily
improve, and transaction volume and prices are
back to historical high levels, although acqui-
sitions are extremely selective, with sensible
cap-rate compression.
Adding value is crucial at this (cycle) stage, so
successful real estate investors know it is worth
the additional costs (in terms of money and ego)
to find help when they need it and embrace
local professional’s expertise. On the other hand,
strategies based in smart ideas and innovation
are giving a competitive edge at reshaping or
even redefining the final product, which the
market absorbs with gusto, making at the end
of the day a higher return for the investor.
Joan Vidiella
Spinnia
Managing Partner
«Strategies based in smart ideas
and innovation are giving a
competitive edge at reshaping or
even redefining the final product»