Source: Freepik Author: Redaction The Apoiar Freguesias (Supporting Parishes) Programme , which provides 100% reimbursement for parishes expenses with medical equipment and devices, personal protective equipment, laboratory analyses, tests and other diagnostic means, as well as medical assistance and other basic health needs, following the pandemic period, saw its order changed in the Diário da República (Official Gazette) due to an oversight in the analysis of applications. According to the publication, the government had already announced that the parishes would receive 4.3 million euros, but the applications submitted by the Parish Union of Prazins Santo Tirso and Corvite, in the municipality of Guimarães, and the Parish of Pampilhosa, in the municipality of Mealhada, were not analysed. Once the order was amended to include these two applications, it was decreed that the two parishes will receive a total of 6,748 euros to help pay for Covid-19 expenses throughout 2020 . Guimarães will receive 1,662 euros, while Mealhada will receive 5,086 euros. There was also another oversight involving the allocation of 866 euros to the parish of Cabril, in the municipality of Montalegre, which should have gone to the parish of Cabril, in the municipality of Castro Daire. The decree-law published on 1 February reads: it appears, however, that due to an error on the part of the bodies responsible for analysing applications under the Supporting Parishes Programme, financial support to the value of 865.92 euros was wrongly proposed to the parish of Cabril, in the municipality of Montalegre, instead of the parish of Cabril, in the municipality of Castro Daire, and, on the other hand, the applications submitted by the União das Freguesisas de Prazins Santo Tirso e Corvite, in the municipality of Guimarães, with eligible support of 1. 662 euros, and by the parish of Pampilhosa, in the municipality of Mealhada, with eligible support totalling 5,086 euros. Read more: Real estate funds increase focus on residential property , Lisbon launches applications for rent support
Source: Freepik Author: Redaction Rising costs are affecting every aspect of life in 2023 and real estate is no exception. High rates of inflation impact businesses - especially smaller businesses and startups - heavily. As their operating costs increase, there is also likely to be greater difficulty in acquiring commercial space in their desired locations, which could limit their ability to grow. At the same time, the demand for high quality office space has been increasing in the last few years , putting greater pressure on rent prices. On the other hand, the period of successive closures, a consequence of Covid-19, has reduced the number of concluded works, delaying construction deadlines and causing material shortages. Savills Research , sent in a statement to SUPERCASA Notícias , shows that between 2019 and 2022, prime office rents will increase in most major global urban centres, despite the disruption caused by the pandemic. Small and medium-sized enterprises (SMEs) are again being hit hardest by this upward trend in values. In many cities, the rise in rents has spread outside of the historic central business districts, with SMEs moving to more remote areas and less attractive buildings. What are the options for protecting and promoting small and medium-sized enterprises which, according to the World Bank, represent around 90 per cent of the business fabric and more than 50 per cent of employment worldwide? Off-the-shelf solutions The emergence of coworking spaces, which offer a full range of services without long-term lease contracts has been a growing trend. In terms of comparing the cost of a coworking space against the net effective value of a conventional prime office, Savills Research found that a coworking space is on average 40 per cent cheaper, although there is considerable variation between locations. Strengthen the ecosystem of startups Flex solutions can, however, be expensive for smaller startups. In this type of situation, public funds are used which, together with private investment, promote the creation of hubs. Incubators and Accelerators Similarly, university incubators support companies and start-ups driven by the university community, leveraging academic talent. For the companies that support these initiatives, it is a valuable opportunity to engage with innovative startups and the talent they attract. Pushed up and priced out In the residential property sector too, affordability pressures are acute. An ageing population and the rise of single households mean intensifying competition for a limited supply of affordable urban housing. Both capital values and rents have been rising, with demand for rental accommodation being exacerbated by recent increases in mortgage interest rates. A new purpose for commercial stock Other opportunities aimed at increasing the availability of affordable housing in town centres include the redevelopment of old commercial stock into new housing. As well as the regeneration of deprived neighbourhoods through a combination of affordable housing alongside commercial property. Alexandra Portugal Gomes, Head of Research at Savills Portugal, says: Lisbon is the perfect example of a destination where the process of internationalisation through tourism, and later the business ecosystem, has put significant pressure on housing prices, the volume of demand for office space and its quality. It is very curious to note that in the post-pandemic period, the opening of mentalities to the practice of more hybrid working models or even 100% remote working has brought a new dynamic to the capital. In Lisbon alone, it is estimated that there are currently around 15,200 digital nomads, who seek to enjoy a slower pace of life, good climate, good gastronomy and an innovative networking environment. Coworking spaces, which are expanding at a high rate, now also mix other concepts into their offer, such as Coliving or vice versa. When a city like Lisbon, a small city with a scarce supply of spaces, receives an uninterrupted movement of new residents, the pressure on costs is inevitable and it is necessary to find new solutions that allow the market to stay in the race and be competitive. Solutions that include increasing the supply of houses at more accessible prices compared to the average national salary, with an increase in residential development in more peripheral areas, but also, and at the level of offices, it is necessary for their stock to gain new life and be able to keep up with these new trends, very much linked to issues of flexibility, hybrid working models and well-being . Continue reading, about Real Estate market: More people move house in 2023 , Braga reinforces investment in Urban Rehabilitation Areas or Opinion: Buying property cools down while competition increases
Source: Pexels Author: Redaction Tourism activity in February is estimated to have grown , according to data from INE (National Statistics Institute). Compared to January, there was an increase of 1.7 million guests and four million overnight stays , making increases of 33% and 35.5%, respectively. With these data it is already possible to confirm that pre-pandemic levels have been reached, where the number of guests was 4.3% and overnights 5.9%. Of all the guests validated in this analysis, foreign tourists stand out, totalling 2.7 million in February this year, a year-on-year increase of 51% and 6.5% more than in 2020. The domestic market only made up 1.4 million overnight stays, with a growth of 19% compared to last year and 4.9% compared to the same month of 2020. In the total of the first two months of 2022, there was an increase of over 50%, with 27.2% from residents and 70.6% from non-residents. These were widespread across the country, although the Algarve and the Azores were the only two regions where there were decreases in the number of overnight stays when comparing this data with that of the pre-pandemic. You can also read Homes of the week in Cascais
Source: Pexels Author: Redaction It was at the opening of the Madrid Tourism Fair (FITUR) that the president of Tourism in Portugal, Luis Araújo , said that the year 2022 is already considered to be the best ever from a revenue point of view , as more than 22 billion euros are estimated. This is well above the 18.4 billion recorded in 2019, which was the last year before the covid-19 pandemic. Luis Araújo believes there has been a recovery, earlier than expected due to the impact of the pandemic, and leaves quite positive forecasts for 2023. The president of Tourism in Portugal underlines: we believe we are very well positioned. An example of this is this fair, FITUR , making reference to the Spanish market which is currently one of the best for Portugal, both in terms of revenue and in terms of guests, and confirms that there is work to be done as far as Spain is concerned, to increase revenue in certain segments of the tourism market. The strategy involves diversifying the core of markets, in which Portuguese tourism still has many of its foundations, and in which a bet on improving air connections is necessary. Luis Araújo reinforces that we have managed to recover the routes that we had lost in 2020 and 2021 and we already have indicators very close [to those of previous years]. This year, 2023, we will surpass 2019. It is one of the great anchors for the recovery of the sector , highlighting the importance of growth in all airports and also highlighting the importance that Spain had as an optimal factor of distribution of tourists. To this extent, efforts continue to be made to strengthen links, but also to develop tourism in the interior of the country, in a strategy of cross-border cooperation between Portugal and Spain in the tourism sector. Read more at Portugal elected as destination trend of 2023 or Hotel sector predicts 27% increase in revenues
Source: Pexels Author: Redaction The International Labour Organization (ILO) carried out the World Employment and Social Outlook: Trends 2023 , a study in which it concludes that, due to the current global economic slowdown, it is estimated that more workers will be forced to accept low-quality and poorly paid jobs that lack job security and social protection. As a consequence of this phenomenon, an accentuation of inequalities is then expected, something that has already been occurring in the context of the Covid-19 pandemic. The ILO estimates a decrease in the global growth of employment, something that, compared to previous forecasts, translates into a 1% deceleration compared to 2022, where the deceleration was 2.3%, and therefore a slight increase in unemployment is estimated for the year 2023. Global unemployment is estimated at 5.8%, justified by the scarce labour supply in developed countries. Despite these figures, global unemployment may remain 16 million above the benchmark set in 2019, in a pre-crisis context, and the ILO states that job quality remains a key concern [...] Many workers will have to accept lower quality jobs, often at very low wages, sometimes with insufficient hours. All of this may well push many people into poverty, with prices soaring in line with low incomes, something the ILO highlights as a trend that is in addition to the significant falls in incomes seen during the covid-19 crisis, which in many countries affected low-wage groups the most , and it is mainly women and young people, according to this report, who are significantly worse off in labour markets . You can read more current affairs in SUPERCASA Notícias or in VAT tax reduction: variations in application
I begin this article with a disclaimer: those who know me, know that I am an optimist. Now comes the adversative notwithstanding. And yet, we live in unique and highly challenging times for the real estate ecosystem as a whole, from developers to real estate consultants to builders or even decorators. We live in times of great instability and vulnerability. It started with the pandemic, was aggravated by the war in Ukraine, now joined by rising interest rates and inflation. A conjuncture that leaves us all with a very limited capacity to foresee scenarios, even in the short term. But what I didnt want to have to talk about is something I dont see in the newspapers and which, I fear, is on the horizon, leveraged by the conjuncture we are already experiencing and which may worsen: a crisis with a strong social impact. My greatest concern is, and has always been, the people. Many times, I was left talking to myself when I called attention to the easy promise of high earnings, which brought to mediation people from areas as different as restaurants and hotels, to architecture, teaching, nursing, or law. It was easy to be lured with high profits. Training was non-existent and the access to the profession (another aspect I talked about so much!) was direct, without any constraints or concerns about training. Nowadays, we are correcting the rise in inflation by raising interest rates, which has a very clear and immediate result: the 6 and 12 month Euribor have already reached positive values. So, as the installments are revised, depending on the contract with Euribor at 3, 6 or 12 months, the amounts to be paid by families will inevitably increase. Obviously, there will be immediate repercussions in the dynamics of the real estate market, not only in Portugal, but throughout the western world, impacted by inflation. At the end of the line, besides families and investors, are all the real estate consultants that flooded the market. What will be the social impact? To be sure, we dont know. But I am sure of one thing: it will be great and will create an unemployment crisis in the sector. And, this, regardless of the segment in which you operate. The market is interconnected and will be affected in parallel, although in the luxury segment, especially among investors, the impact will be small. Households, investors, developers, builders and other players are exposed to rising interest rates, which affect the activity of all equally, although in the case of mortgages, the impact falls on households. In the long run, in addition to the social crisis among real estate consultants that I mentioned, the results may come from bad loans, which means that the market will start to be flooded with toxic product, which will also affect property prices, although, on the other hand, it may act as a price stabilizing agent. We shall see. One thing we know for sure: buying a house, for families and investors, has always represented a safe investment with permanent appreciation. Now, even in a scenario of inflation and rising interest rates, it is no different. The target to which we are addressing, even though it can better accommodate economic fluctuations, is not immune to them and, in many cases, sustain their business on purely rational criteria and not only emotional ones, as many associate with buying a house. Source: Filipe Lourenço, PLREs CEO
According to information transmitted by the Bank Portugal the year 2021 recorded a sharp growth compared to 2017, four years since there had not been such a high prosperity, the amounts granted increased by 37% and the number of contracts by 29%. In 2020 the mortgage market had not been particularly affected by the Covid-19 pandemic, with the amount of credit granted increasing slightly compared to the previous year. However, the growths seen in 2021 are the sharpest since 2017, says the Central Bank. According to the information transmitted by the Bank of Portugal the credit contemplated in 2021 exceeded the values of 2020 in all quarters of the year, as previously mentioned the second and third quarter of the year had an emphasis of 62.2% and 43.1%, a result of the effects of the Covid-19 pandemic in the corresponding periods of 2020. In 2021, credit intermediaries accounted for the marketing of about 16.1% of the total value, a much higher figure compared to the year 2020, 12.9%, says the Central Credit Liability of the Bank of Portugal. Contracts in the portfolio The number of these contracts was stable, helping the value of debt to grow to 12.4%, 0.9% less than in 2020. The average term decreased in new contracts but increased in those in the portfolio. Variable Rate Represented 85% of new contracts, when compared with 2020 the increase was accentuated, the value in 2020 was 82.5%. Mixed Rate Decreased its importance from 11.9% of new contracts in 2020 to 10% last year. Fixed Rate Also decreased from one year to the other presenting values of 5.6% (2020) and 5.1% (2021). Spread The banks spread, i.e. the average spread of new contracts with variable rate has remained constant since 2015, when there were decreases, with new contracts associated with Euribor at 3, 6 or 12 months an average spread of 1.14% was transmitted from the contracts established in 2020 with the value of 1.19%.
Marcelo Rebelo de Sousa was speaking at the close of a debate under the auspices of the Book Festival in Belém, which was moderated by Pedro Mexia and which included the participation of former Left Bloc MP José Manuel Pureza and Diana Soller, a specialist in international politics. When outlining the current global situation, the head of state stressed that the international situation is extremely complex because no one knows what the epilogue of what we are living through will be, no one knows what the costs of this epilogue and after the epilogue will be, and no one knows what the definitive configuration will be in the correlation between the major powers in the world, as reported in Público. In an indirect mention of the United States and the upcoming presidential elections in that country, Marcelo Rebelo de Sousa said that no one understands what the internal American evolution will be, and that is not indifferent. The president added that the position towards the other powers [in Donald Trumps time] was substantially different from the current position. There is a problem here of correlation of powers. Europe is the theater where the whole set of current circumstances is projected, but Europe humbly knows that there are realities that go beyond it, warlike realities. According to the same news source, with regard to the war in Ukraine, Marcelo Rebelo de Sousa conveyed a deep concern. He also emphasized that emotion has always been in politics, only that it was disciplined substantially or apparently by reason. Now, it has overstepped the limits of reason, and the most that reason can do is try to condition and curb the excesses of emotion. For the head of state, as far as the Ukraine case is concerned, there are issues to be handled rationally, but others in a very emotional way. He also stressed that this emotion is present. It will be said that as time goes by reason increases and reason decreases, but that is not so linear. Its not linear when faced with dramatic, complex, and brutally visible situations, he justified. In other words, there is a great deal of emotion and this emotion requires enormous balances. In relation to the European Unions internal problems, the President of the Republic stated that it has been at a crossroads for a long time now, when national political systems in some member states have collapsed. The Head of State exemplified that just look at parties that were structuring party systems and that no longer exist or are fragmenting, such as Italian Christian Democracy or French Gaullism, according to Público He also argued that this crisis in political systems is not unique to Europe. It exists in the American system, as we had the opportunity to see not so long ago. It is a complex problem, different case by case, but with an appreciable amplitude. Whats new now is that there is a more intense test. According to Marcelo Rebelo de Sousa, this more intense test has called into question everything that was being debated and tried to balance, alluding to the covid-19 pandemic, which is global, and also the war in Ukraine. The president also stated that the European Union initially had great difficulty in reacting to the pandemic challenge, but then readapted and made an effort to adjust. Now, this permanent adjustment effort, with ups and downs, is the European process. However, he added, Add to that now the war in Ukraine, with the consequences of economic, financial and social crises on top of other very recent crises. I wouldnt say its a perfect storm, but its almost perfect, he concluded.
According to data from Decisões e Soluções, a real estate consulting network operating in Portugal, in the 1st quarter of this year, the type of property most purchased by the Portuguese was the 3 bedrooms, followed by 2 and 4 bedrooms, according to a statement sent to SUPERCASA Notícias. Apartments continue to be the preference, followed by houses and in third place the land for construction. In terms of acquisition values, villas continue to be the most expensive with an average value of around 185.800 euros, apartments represented an average value of 146.040 euros and land for construction of 77.100 euros. According to Guida Sousa, National Coordinating Director of Decisões e Soluções, After two years of Covid-19, there is no doubt that the Portuguese began to value other details in comparison to the pre-pandemic. More comfort, outdoor spaces started to be more decisive criteria and this weighed in the location of the properties. Telecommuting allowed families to move to areas even further away than the outskirts, places that were previously stagnant, thus contributing to their development. With this, the real estate sector never stopped, it proved to be resilient and even more dynamic. About the present time the responsible says the increase in the costs of construction materials and the credit conditions, namely the increase in Euribor will lead the market to new challenges, where the trends of buying and selling houses may change. The personalized advice provided by those who are really accredited becomes, therefore, nowadays even more important for a conscious decision making. Regarding the profile of the buyers, men are in majority with 62% and women represent 38%. In relation to ages they are between 30 and 40 years old. As for nationality, 91% are Portuguese buyers, 3% are from the UK and 2% are French. The remaining 4% are German, Italian, Belgian, Finnish (mainly in the Algarve), Brazilian, Chinese, American and some Canadian (in the North and Center). The Decisões e Soluções network provides a personalized and independent advisory service to individuals and companies, with 360º solutions for buying, selling and renting property, as well as credit intermediation, insurance mediation, remodelling works and property construction. The network currently has more than 100 stores and 1200 employees nationwide.
According to an international study revealed by the American consulting firm Berkshire Hathaway, in the next twelve months the real estate market will continue to accelerate, becoming even more competitive. The conclusions of the study also dictate that with the opening of borders, in this period of pandemic end, it is expected to see an increase in international buyers who have not yet been able to make their distance purchases. Many professionals, questioned by Berkshire Hathaway, reveal that properties such as city apartments, thought to be less desirable during the pandemic, will return in force as life returns to normal. However, Christy Budnick, CEO of Berkshire Hathaway HomeServices points out that inflation appears to be less transitory than many initially believed, which will have a widespread impact on consumer behavior and the overall economy. Similarly, the monetary policies launched to combat the effects of inflation - namely, bank rate increases - will also influence the market and put pressure on demand. According to Berkshire Hathaways analysts, relative to Portugal, there is a consensus that the real estate market has entered a new cycle. The study indicates that the pandemic has generated an acceleration in the market, which has become more competitive and focused on price, which is sustained by the high levels of demand. In addition, six out of ten real estate professionals say that the rise in demand for residential properties is above the global average. This gradual demand is affecting the relationship between price and quality. Consequently, Portugal was the market where the highest proportion of respondents indicated they were becoming more price-focused over the last twelve months. In fact, some 78% of Berkshire Hathaway respondents reported being more price oriented, while only 17% considered themselves to be more quality focused.