ILN: BUYING AND SELLING REAL ESTATE - AN INTERNATIONAL GUIDE

[BUYING AND SELLING REAL ESTATE IN PORTUGAL]

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professional, with foreign investments being few and far between. The elimination of foreign exchange risk with most of other European markets, when Portugal joined the Euro in 1999, placed the country more notably on the radar of international investors. Investment, in 1998, ahead of the Euro’s launch, i ncreased from around €180 million to more than €400 million, around 90% of which was foreign. Almost all asset transactions were in the office or shopping center sectors, with retail property accounting for more than 60% of the capital involved. Portugal saw a steady grow in real estate investment during the last decade: • In 2008 and 2009, the real estate investment was relatively low, mostly due to restrictions and scarcity of bank funding for the real estate sector. • A slight recovery was noticed in 2010 with a total investment volume of €690 million. • The two following years continued to reflect the sector investment tendencies. 2011 saw a total investment value of €167 m illion, while 2012 reached the lowest level of the century, recording only a total investment of € 108 million. • In 2013, the growth of the market activity began, and a total of €322 million in commercial real estate assets were closed, tripling the volume of the previous year, followed by a significant growth also in 2014. • In 2015, numbers largely surpassed the investment of previous years, including a historical high of 2007, with a registered €1.9 billion of transactions in

commercial real estate assets, doubling the volume of the previous year. 90% of the invested capital came from outside the country. • During the year of 2016, the value of real estate transactions stabilized around € 1.3 billion) and then reached a new historical high in 2017, with € 2 billion invested in real estate. • In 2018, a new historical high was registered, with over € 3.5 billion of investment. During this period, it was also evident a significant increase in the volume of the number of transactions,

as evident in the figure below:

Number of real estate purchases of the last six years. • In 2020, even with the worldwide pandemic caused by the Covid-19 disease, the number of properties transacted only decreased by 19.7% compared to the previous year. On the other hand, the average value of the properties transacted in 2020 increased slightly (+0.5%) compared to 2019, from 112.5 thousand euros to 113.1 thousand euros.

ILN Real Estate Group – Buying and Selling Real Estate Series

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