30 / 110
30 // iberian.propery / 2017
dossier// ISSUE: TOP IBERIAN Investors
It is well known that there is currently a lack of newproduct in
primary locations in the Iberian Peninsula, namely in Portugal,
both in the residential and services segments.
As such, I believe that the greatest challenge will be to
recognise new locations outside Lisbon and Porto where
prices are still attractive and there are good chances to create
interesting capital gains, especiallywith tourism expanding
outside the major cities and its recognised ability to drive
future investment.
But for those who insist on the main cities, namely Lisbon,
there is a good alternative at the moment: buy land and build
from scratch. There are good locations, good allotments,
a willingness from banks to help development once again
and there is still substantial liquidity in the market.
Another challenge will always be the tax and legislative
issue, since these have not always had the desired stability,
with some advances and setbacks, which is less than ideal
for long-term investors.
Finally there is the decision-making process. Despite some
improvement, coordination with local authorities regarding
the timing to approve and submit the necessary require-
ments for those who develop new projects or wish to alter
old ones, is still far from optimal in a market as volatile as
this, where players need to complete their projects within
the same economic cycle and avoid the risk of the economy
slowing down or changing direction.
Time to market is decisive in every business and more so
in this industry, where the investment, versus risk, versus
time ratio is greater than in many other economic sectors.
José Araújo
Millennium bcp
Director of Real
Estate Business
Management
How to choose in
a mature market?