The "appetite" for acquiring land and development assets in Portugal is growing and approaching pre-Covid levels, including both national and international players, projects in various segments and with various scales, "based on a high demand from end users". This is one of the conclusions of the annual "Market 360º" study by the consultancy firm JLL, according to which real estate development will be one of the most promising sectors in 2022.
"There is a structural lack of supply that is transversal to the entire real estate sector and therefore needs to be resolved for the market to grow," said Pedro Lancastre, CEO of JLL, quoted in a statement sent to the newsroom.
Joana Fonseca, Head of Strategic Consultancy & Research at JLL, recalled that "in housing the stock has increased by only 1.9% in the last decade, which corresponds to about 108,500 units, or less than what was sold this year alone. The consultant's 'Living Destination' study, in which the consultancy outlines a portrait of the country's residential market, and which reveals growth of just 5.88 million homes to 5.96 million between 2011 and 2021.
"In alternatives, for its part, there is an estimated shortage of 20,000 beds for student residences, while in senior residences a JLL study notes an additional need for 17,000 beds. Not to mention the industrial and logistics sector, where supply is dominated by obsolete areas, which has ultimately slowed absorption. Offices also struggle with the lack of product for immediate occupation, but it is one of the segments where the new supply is already more developed, with around 173,000 square metres (m2) under construction until 2023," she added.
Sustainability, a new demand (and a challenge)
According to the consultancy's study, and with regard to the development of new real estate products, sustainability criteria will be increasingly present in the demand and "developers will not be able to play down these issues". This will be transversal to real estate for commercial use, such as offices or industrial and logistics, but also in housing and alternative segments.
"Final consumers, whether companies or individuals, will be increasingly demanding with these sustainability issues and this will be a new challenge for the real estate sector. This includes investment, where the eligible stock will be that which meets sustainability, social and governance requirements. The financing of operations and real estate will also be conditioned by the standards of the European Union Taxonomy. The assets that do not comply with them will be off the investors' map, or else they will be acquired at significant discounts", Joana Fonseca concludes.
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