Developers expect loss of confidence

A survey, which canvassed real estate developers about the perceived effects of the Government’s ‘More Housing’ programme unveiled in February, revealed that it would have negative effects on the market.

The Portuguese Investment Property Survey from the Portuguese Association of Real Estate Developers and Investors (APPII) and Confidencial Imobiliário revealed that 91% of those developers who responded to the survey thought the policy was damaging to the residential housing market.
They also thought that the policy would lead to a lack of confidence among investors in the market, reduce offer and, as a consequence, would continue to encourage the trend in rising house prices.
Only 12% thought the Build-to-Rent market in Portugal was attractive (40% in the previous quarter) while 32% thought Build-to-Rent was totally unviable (it had been 14% in the previous quarter).
Ricardo Guimarães, director of Confidencial Imobiliário, said: “When asked about the impact that the programme in its main tenets would have on their activity, real estate developers were negative in all the programmes aspects. The survey showed that in many aspects the programme would have the opposite effects of those intended.
“From among the factors considered for the impact index, investor confidence, offer for sale on the market, and the behaviour of prices were the indices most negatively affected with the overall results providing a bleak reading: the programme will affect the confidence of investors, causing a fall in offer which will fuel property prices increases”.

Photo: APPII president, Hugo Santos Ferreira