Record €33Bn transacted in residential real estate in 2021
Portugal’s residential real estate market continues to be resilient to the effects of the Covid-19 pandemic according to property consultants JLL.
Its estimates point to a record €33Bn in transactions for 2021, corresponding to a two-digit increase on last year. These estimates mirror those from Beatriz Rubio, CEO of RE/MAX Portugal who predicted last year that 2021 could end with 200,000 properties sold, exceeding the 181,478 properties sold in 2019.
According to JLL, home sale transactions could be worth €30Bn for 2021, from a total of 191,000 properties sold.
Commercial real estate (non-home sales) should be in the region of €1.8Bn to €1.9Bn. Based on these sales, the total property turnover in all segments (hotels, offices, retail units, shopping centres, logistics and warehousing, etc.) could be over €1000 million in real estate development operations.
“The estimates for the €33Bn residences transacted compares to the €28.9Bn achieved in 2020. This behaviour reflects the residential segment’s performance in which estimated sales seem to suggest a new record — an amount that has exceeded the 2020 amount of €26Bn by 15%”.
“Commercial real estate investment should be between €1.8Bn and €1.9Bn, a robust turnover, but 30% below 2020 (€2.8Bn) which is down to “delays in completing big ticket operations within the context of restrictions throughout the year and the lack of investment product in certain sectors of the market”, says JLL.
CEO of JLL, Pedro Lancastre (pictured) said that despite the adverse context of the pandemic, which has had an impact on the sector for two years, it is clear that real estate has been fundamental for economic recovery and that this contribution has been especially evident in housing which has seen booming levels of demand at historic highs”.