Housing package spooked investors says Engexpor

 In Construction, News

The CEO of Engexpor, one of Portugal’s largest national construction mangagement groups, Miguel Alegria has warned that the measures foreseen in the Government’s ‘More Housing’ package are spooking international investors.

The CEO says that international real estate investors, particularly fund management companies, could be frightened off by the policy which has received across-the-board criticism in Portugal.
Miguel Alegria, whose company specialises in construction and construction project management, says that many of these investors, particularly conservative ones, are “now concerned by the lack of stability and might mothball their investments”.
In an interview with Negócios, he said: “We have heard a considerable and growing worry from investors who are waiting to see what will actually happen” said the CEO of the Portuguese company which provides services to large developers and investors that operate in the national market.
Miguel Alegria says that none of their projects have stalled for now, adding “we’ll only be able to measure the impact of the Government’s announcement in a few months time when we could expect to see some falloff in decisions”.
The CEO also says there is a general consensus that some of the Governments measures will be difficult to apply and that many may not have the desired effect that those who designed the policies aimed at alleviating Portugal’s chronic housing shortage had hoped.
In his opinion, the problems that have an impact on the final cost of housing include delays in licensing, VAT and the increase in the costs of construction.
“These three issues at the same time mean that it is really difficult to build housing at an affordable price.”
As for coercive rental policies, he said that the idea being projected overseas was that the Government was following polices that were very different from the European and United States standards.
Miguel Alegria also pointed out that ending the Golden Visa programme sent a message to the international market that Portugal had changed its rules to suit the tastes of the Government, hinting at a politically motivated policy rather than a sound economic or business policy.
“These restrictive measures will serve to scare off investors more than attract investment”. In 2022 alone, Engexpor helped 31 transactions, representing an investment volume of €850 million and warned “these international funds are here now but could quite easily move their investments to another country”.

Photo: Flower Tower Camellia, Palmeira da Leca, Portugal