The necessary regulatory framework for investments: clear and stable.

The instability in Portugal at the political, tax, and legislative levels has been identified by several national and international players in the real estate sector as an obstacle for new businesses. This is a constant challenge that companies involved in promotion, construction, and real estate brokerage are complaining about.

Luis Filipe Silveira, the real estate director at Hipoges (Portugal), is one of those vigilant voices warning that "to attract national and foreign investments, it is necessary to have a clear and stable regulatory framework in the country." Despite all this, in an interview with idealista/news, the responsible employee emphasizes that this leader in Asset Management - present in Portugal since 2009 - will continue to strive "to attract investments to the country and find solutions for investors and end clients."

The manager also says that Hipoges, founded in 2008 in Madrid (Spain), already manages "more than 49 billion euros in assets (loan management and real estate management)" worldwide. "This means that since 2008, we have been able to increase our business volume fivefold and strengthen our position in the territories where we are present - Portugal, Spain, Italy, and Greece - in Southern Europe," he says.

At the national level, Luis Filipe Silveira states that Hipoges has 7.5 billion euros in assets under management and around 5,000 properties under management. "We have more than 30 client portfolios, and yes, growth is being observed. Moreover, in the real estate market, we sold real estate assets worth 1.3 billion euros in 2023," he explains.

In response to the question about the attractiveness of Portugal as an investment destination in the real estate sector, he clearly states: "The country has always been very appealing to investors: it has a particularly advantageous coastline, a pleasant climate, more attractive prices compared to other European countries, and we are the seventh safest country in the world and the fourth in the EU. All these factors are important for considering the country a stable place for investments."

Hipoges was founded in 2008 in Madrid and "landed" in Lisbon the following year, also having an office in Porto since 2019. What balance has the company made in Portugal and the market since then? Hipoges demonstrates significant growth based on three main principles: a specialized and dedicated team, a sustainable portfolio of clients and assets, as well as a wide range of services related to asset management. In Portugal, we increased our real estate volume by 3.5% in 2023, making us leaders in the Portuguese real estate market and serving as an important reference profile in Asset Management.

Positive results are associated with our "from start to finish" approach, which allows us to manage important operations in premium areas such as Lisbon, secondary or remote districts, as well as complex assets, such as the unfinished construction of a wastewater treatment facility in Alverca, which had been halted for about two decades.

“Hipoges is one of the leading platforms in the field of Asset Management, managing over 48.5 billion euros in assets,” the company’s website states.

“What are these assets? What are the segments? At our annual conference, Hipoges Move On, we announced that we have already reached over 49 billion euros in assets under management (loan management and property management) since 2008, which means we have been able to increase our business volume fivefold and strengthen our position in the markets where we operate - in Portugal, Spain, Italy, and Greece - in Southern Europe.”

Hipoges manages various types of assets (apartments and houses, shops and commercial warehouses, land, buildings, garages, and offices), adding value regardless of the condition, location, and type of property. I am confident that this is one of Hipoges' main advantages as a management organization, allowing us to grow and offer clients the perfect solution at the right moment (from start to finish).

In the case of Portugal, what assets does Hipoges manage? In which areas of the country? Has the portfolio increased in 2023 compared to 2022? In Portugal, we have 7.5 billion euros in assets under management. Among them, there is only the property management part and other assets - debt obligations. We can also report that we have about 5,000 properties under management. In Portugal, there are more than 30 client portfolios, and yes, there is growth. By the way, we are also expanding in the real estate sector - in 2023, we sold real estate assets worth 1.3 billion euros.

“In Portugal, we have 7.5 billion euros in assets under management. Among them, there are only real estate assets and other assets - debt obligations. We manage about 5,000 properties. In Portugal, there are more than 30 client portfolios, and yes, there is growth. (...) In the real estate market, we sold assets worth 1.3 billion euros in 2023.”

To achieve these results, we invested in technologies (a portal connecting us with partners and our real estate portal) and other tools and mechanisms, such as campaigns, to encourage investors to continue investing in us.

What is the share of the residential segment in Hipoges' portfolio in Portugal compared to other segments? What types of properties are these, where do they come from, and what type of clients are they intended for? The weight of the residential segment is quite high, accounting for over 80% of transactions in the group's real estate department. The remaining 20% of transactions in Portugal involve buildings, commercial premises, warehouses, garages, land, and offices. These properties come from various sources, such as banks, investment funds, insurance companies, private investors, and others. As industry leaders, we know how to manage any type of asset in the real estate market. Our businesses always present challenges, for example, the ETAR-Olverka land, for which we found a solution despite its complexity (a difficult issue that had remained unresolved for nearly two decades). Our main goal is to find solutions for any type of asset, regardless of its condition.

“The weight of the residential segment is quite high, accounting for over 80% of transactions in the group's real estate department. The remaining 20% of transactions in Portugal pertain to buildings, commercial properties, warehouses, garages, land, and offices. These properties come from various sources, such as banks, investment funds, insurance companies, private investors, and others.”

Our customers are various entities: private individuals, private and institutional investors, mainly any buyers operating in the real estate market.

What to expect in 2024, what are the expectations?

The year 2024 began with news of the sale of a 40-hectare estate in Estremoz and a luxury building in Lisbon. Is there a way to find out the prices and the names of the buyers? Are there more deals planned? What are they? I can only say that these were two significant sales that confirm the group's position in the industry and strengthen its capabilities in various business fields. Recently, the company Hipoges announced the launch of an "innovative method inviting clients and investors to make offers for some of its real estate assets," with more than 100 properties awaiting bids.

What does this service entail and what is its purpose? "Name Your Price" meets the demands of a very competitive real estate market and allows us to communicate with clients in a new way while also attracting new buyers. We cannot forget that potential buyers are currently facing challenging economic conditions - high interest rates, inflation, uncertainty - and thus they have the opportunity to propose a price for the property. We started with a set of 100 properties, but we believe this listing will grow, and we will be able to add some others. We think this solution could make sense for our buyers by offering them a different approach to the purchasing process.

Looking back, we can see that Hipoges has successfully navigated various crises, both national and global, that have impacted the real estate market, such as the financial crisis, the pandemic, and more recently, inflation, high interest rates, and conflicts in Europe. What lessons can be learned from all these moments? Has resilience become the main principle?

That's true. On a global scale and in Portugal, we have managed to overcome various crises and maintain a growth trend. We are resilient and proud of how we decisively and creatively tackle all challenges, and I am confident that our results and achievements reflect our solid strategy, business diversity, market experience, and the knowledge of our employees who manage the entire operation on a daily basis. All of this leads to increasing customer trust in our results.

Internal stakeholders also point to legal or managerial instability, which may deter investment in the real estate sector. Do you agree with this idea? What would you ask the next government for?

Hipoges pays close attention to all the social issues we face in the country, and I want to immediately convey the message that we want to be solution creators. Every day, we look at these problems, we know they exist and have a significant impact on everyone, but we also know that we can be part of the solutions. After all, we sell real estate to government agencies, whose main goal is to eliminate the shortage of affordable housing in their areas.

“We believe that having a clear and stable regulatory framework in the country is crucial for attracting national or foreign investments. Despite legislative instability or other challenges, we will continue to focus on attracting investments to the country and finding solutions for investors and end clients.”

We believe that having a clear and stable regulatory framework in the country is crucial for attracting national or foreign investments. Despite legislative instability or other challenges, we will continue to focus on attracting investments to the country and finding solutions for investors and end clients. I always keep in mind that Hipoges, as a group, is always ready to discuss the necessary measures to improve and stabilize the Portuguese market.

In recent years, Portugal has been in the spotlight for real estate investors. Will this trend continue, or could the country face a decrease in visibility/attractiveness? The country has always been very appealing to investors: it boasts a particularly advantageous coastline, a pleasant climate, more attractive prices compared to other European countries, and we are the seventh safest country in the world and the fourth in the EU. All these factors are crucial for considering the country a stable place for investment. Investors have a business plan that they developed at the time of purchase and want to believe that it will remain stable rather than constantly being in imbalance, which could lead to negative outcomes. Hipoges continues to actively attract investors to Portugal, such as in the secondary housing market, private investments, as well as drawing investors to other sectors like industrial, commercial, construction, and others that contribute to economic growth and make the country attractive for investments.

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