Real estate: maintaining the level of foreign investment

The company ODEON Properties emerged in Portugal ten years ago thanks to Portuguese Jorge Capelo and Frenchman Julien Dufour. "We already have about 10 completed projects, all of them in the historic center of Lisbon," Jorge Capelo tells journalists at idealista/news. The representative of the construction company says that now, after ten years, the company is turning its attention to other geographical areas, such as a large project on the Costa da Caparica, one of the "coolest" areas in the world in 2023. Some 200 apartments and 90 villas are planned here. However, Capelo warns the government, "We need to maintain the level of foreign investment. "

The attractiveness of Portugal as an investment destination in''real estate is a hot topic and the socialist government with an absolute majority has decided to cancel the golden visa program and the Unusual Residents (RNH) program. In an interview for idealista/news, Kapelu argues that 'the government must continue to give investors the conditions to invest, otherwise they will stop investing and real estate prices will continue to rise'. He doubts that the Mais Habitação (More Housing) program will solve the housing crisis in which the country finds itself. He suggests creating conditions similar to those that existed in the 80s and early 90s, when young people could buy their first home in a cooperative format with access to favorable interest rates on loans and construction on public,''semi-public and, in some cases, on private sites.

ODEON Properties started operating in Portugal in 2013, correct? Yes, that's correct. At that time, I was selling a building in the Chiado neighborhood (Lisbon) and Julien Dufour appeared as the buyer of the building. The deal didn't materialize, but we still had a mutual understanding and a shared vision, which led to the creation of ODEON Properties.

What is the performance of the company? The balance sheet is very positive, the company is recognized by most market participants - developers, brokers, lawyers and of course clients.

How many properties have you already developed/promoted in Portugal? We have about 10 completed projects, all of which are located in the historical center of Lisbon.

All of them are in the residential segment'. 'real estate? Yes. In the first decade, our focus was on strengthening a brand in a particular sector, in this case residential real estate.

We don't categorize the market in the traditional sense. We appeal to clients who are looking for quality living, a 'lifestyle'. We can sell "lifestyle" in a remote area to a lower segment of the market including schools, playgrounds, quality of life that the community provides to sell our projects. We are not selling luxury, we are selling quality of life and a great place to live. "

"We have acquired a fantastic plot in the municipality of Almada, on the cliff of Costa da Caparica, with magnificent views of the Atlantic Ocean and the mouth of the Tagus River (...). The project includes about 200 apartments and 90 villas, single and''Villas, a complex of 11 villas on Campo de Ouris street in Lisbon.

How much money has ODEON Properties already invested in Portugal, and how much is planned for the next few years? The investments made in the first decade, including the Secret Garden Villas complex under construction, amount to around 50 million euros. The project in Caparica will be on another level, around 200 million euros in total.

Who is the target audience for ODEON Properties' projects?

Are there many Portuguese among the buyers? We usually run a pre-launch campaign with'We are attracting a significant proportion of Portuguese buyers who decide to purchase properties at an early stage. But we cannot deny that a significant proportion of buyers are foreigners, approximately 50%. However, this percentage can vary depending on specific neighborhoods.

What nationalities are most active among foreign buyers? Various. Portugal is attracting an interesting foreign population because of the geopolitical uncertainty in the world.

How pandemic, war, high inflation, rising interest rates, high construction costs, delays in obtaining licenses, are affecting the business of construction in Portugal, particularly the''ODEON Properties' business? The impact is very significant and requires very strict management of the risks and all the uncertainties caused by all the factors mentioned. I know of several projects that end up not turning a profit.

"[The Prime Minister] inherited a country that has carried out remarkable structural reforms, attracting foreign investment over a decade like never before in history, and he has a responsibility to maintain the economic level in the next decade. To do this, we need to maintain the level of foreign investment. "

Is the construction business still profitable/attractive in Portugal? Why? I would like this question to be answered by the Prime Minister [Antonio Costa] as it lies on''his great responsibility. He has inherited a country that has undertaken remarkable structural reforms, attracting foreign investment in a decade like never before in history, and he has a responsibility to maintain economic levels in the next decade. To do this, we need to maintain the level of foreign investment.

What impact could the measures in the Mais Habitação program have on real estate, particularly on the construction business? I don't think the Mais Habitação program will solve the housing problem in Portugal. It is the responsibility of the government to create conditions similar to those that existed in the 80s and early 90s. I remind you that at that time it was very common that young people''look to other markets. Do you share this opinion? What is the biggest obstacle to the construction industry in the country? Foreign investment in Portugal is based on three main factors: the low cost of credit over the last decade; the sense of security in the country compared to other alternatives in the world; specific tax and legislative changes that took place during the troika period to attract foreign investment. The only thing that remains more or less unchanged is the sense of security in the country, but I don't think that's enough to keep those who are already here and continue to attract investment at the same level as in recent years. We need to continue to attract foreign''investment.