The resale housing market in the premium segment is "coming alive", which means that the demand for high-end ready-to-move-in homes is growing. A boost that happens in the wake of the Covid-19 and telecommuting pandemic, which "contributed to whet the appetite of foreigners for fixing residence in Portugal" and the "demand for quality homes, well located and with conditions for immediate occupation," reveals Athena Advisers in a statement.
According to the consultancy, "the increasingly pronounced imbalance between new supply and demand for housing in central areas of Lisbon, along with the growing trend for the acquisition of ready-to-habit properties, is driving the resale housing market in the premium segment.
Quoted in the note, Marta Salgado, responsible for the resale and rental area of Athena Advisers, mentions that the demand for this type of product began to intensify after the lockdown, when international buyers "not only could return to the Portuguese market but did so in force and willing to accelerate the purchase of housing, establishing themselves in Portugal as soon as possible."
These are mainly American, French and British investors/buyers. "They want practically new or renovated homes, often with significant improvements and updates compared to the initial project, well located and in around 50% of the cases already furnished. Basically, they are looking for turnkey homes, ready to be lived in from one day to the next without having to invest or worry about refurbishing them", she explains.
Shortage of supply, especially of typologies above 3 bedrooms
Marta Salgado adds that the supply of houses for resale with these characteristics is very scarce, particularly in the more traditional areas of Lisbon, which are usually the most sought-after by foreign families, such as Lapa, Estrela, Santos and Príncipe Real. "This scarcity is even more evident in flats with typologies above three bedrooms, as they are also the ones that best meet the requirements of these families," he stresses.
How much can these houses cost? Between 350,000 and 500,000 euros for one-bedroom apartments, between 500,000 and 800,000 euros for two-bedroom apartments, and from 1,000,000 euros for three-bedroom apartments and above, reveals the consultant.
"A business opportunity"
According to Marta Salgado, "for some years now Lisbon, and Portugal in general, has been a destination of choice for foreigners to reside and buy homes", a scenario that has been accentuated with "the arrival of pandemic and telecommuting".
"There are many homeowners seeing a business opportunity here. There are people who buy new houses, or to renovate, with the intention of selling again, there are those who bought before the pandemic, to make a profit, and, given the circumstances, decide to sell, and, obviously, there are those who move house and leave another available. In this market the main requirements are high quality and good location, but I believe we will have more supply for a demand that does not stop growing," he concludes.
Athena Advisers points out that, due to the demand it has been registering in this niche market, it is now more focused on the resale market in the premium segment (along with its marketing activity in new developments), having created a department 100% directed to this type of property, which has been gradually growing in its portfolio.