Expensive homes: Europeans are increasingly seeking privacy at home
In Portugal, the luxury real estate market continues to grow, almost unnoticed by what is happening in the world. The truth is that the impact of wars and interest rates on business is "not as significant" as in other segments, mainly because "the percentage of customers buying without credit is higher" and they are less dependent on financing. This is according to Ayres Neto, general partner of The Agency Portugal, an international real estate agency known for its involvement in the TV series "Buying Beverly Hills" on Netflix, which began operating in Portugal earlier this year. In an interview for idealista/news, the head of the agency gives an overview of operations and provides information on current trends.
This well-known American luxury real estate agency has seen many opportunities in Portugal. Their international exposure has helped promote the business in the country, as Ayres Neto explains.
The AgencyThe Agency was already known to the Portuguese audience, even without being in Portugal, and also guaranteed quality and service for many foreign clients who already knew the company or had experience with it in the past. "
For foreigners, Portuguese property prices remain competitive and represent "an excellent investment opportunity." Quality of life, climate, availability of public and private health care and education, and English proficiency are all distinguishing factors. California residents continue to fall in love with Portugal thanks to 300 days of sunshine. Brazilians come because of security, while Europeans look at the country's interior.
How are millionaire businesses doing in Portugal? Is the country still good for investment? What are the plans for the future? Ayres Neto answers these and other questions in an interview.
Why was Portugal chosen as the main market for The Agency in Europe? Despite its small size, Portugal has one of the most interesting and dynamic real estate markets in Europe. Its fame abroad continues to grow and this has led to a constant increase in demand from foreign investors wishing to invest their money, temporarily or permanently living in the country.
What are the strengths of the Portuguese real estate market? And what are its main obstacles and challenges? "
For foreigners, one of the strengths is the competitive price of real estate, which allows the purchase of quality properties, strategically located, to be an excellent investment opportunity. Another strong aspect is the quality of life, already mentioned earlier, which is very much appreciated compared to some countries where even walking outside requires bravery.
With regard to obstacles, high demand and lack of supply are the main problems, as they generate other problems, especially for locals, such as price increases or difficulties in meeting commitments.
How is The Agency's business developing in Portugal six months after entering the market? What conclusions can be drawn?
The balance sheet has been very positive. The project was very welcomed and it confirmed our assumption that there is always room for one more. We are growing and winning over our clients, both national and international, and have already exceeded our first year goals in six months.
Has the success of the series "Buying Beverly Hills" on Netflix played a positive role in the business?
Definitely. The Agency was already known to the Portuguese audience, even without being in Portugal, and also guaranteed quality and service to many clients from abroad who already knew the company or had experience with it in the past.
How is the luxury real estate segment in which you operate growing?
This segment is growing in Portugal, not only in real estate, but in many other sectors. However, I think it's important to sort out what luxury is. This is a very broad concept that can vary from person to person in the real estate industry. For some it may be location, for others it may be the size of the spaces, and for others it may be the finishes, materials, exterior spaces, and so on.
What is your target audience and what are they looking for?
Portugal is popular with many nationalities and the most sought after clients are Americans, Brazilians, French, Germans and Brits. With The Agency being a well-known agency around the world, such closeness and trust between countries becomes easier. Demand is highly dependent on country of origin and age group, as each person comes with their own different needs. When it comes to California residents, they like the proximity to the climate and 300 days of sunshine, so they look for real estate primarily in the south. Brazilians are looking for security and a greater quality of life, so big cities are the target destination. Europeans are now more interested in the hinterland, as quality of life and the opportunity to get away from the hustle and bustle of their home country is important to them.
Americans are still interested in Portugal? Why?
Yes, very much so, especially because Portugal is still affordable, compared to their home country. In addition, there are a number of reasons why they choose Portugal over other similarly accessible countries, such as climate, security, quality of life and high levels of English proficiency.
What is the impact of wars and rising interest rates on your business?
In our segment, the impact of these variables is not as significant, as the percentage of customers buying without credit is higher, so they are not as dependent on interest rates as they are in the cheaper real estate segment.
What is the impact of the cancellation of the 'golden visa' program and changes in conditions for non-residents on your business? Are you confident that such measures will have a positive impact on business?
The impact of the 'golden visa' program is often exaggerated, as it is easier to point the blame than to understand the set of factors affecting price increases and act accordingly. In fact, the contribution of this program is negligible when compared to the overall weight of the market. After the 2008 crisis, it was thanks to the "golden visas" that the main cities of the country were reconstructed and this led to the development of tourism, recognition and large investments in Portugal. Prohibiting the continuation of this program in large cities has had the same effect in the interior of the country, where old mansions, farms, etc. д. are being converted to rural tourism. Which stimulates job creation for young people and rejuvenation of rural areas. It would be very sad if these projects stopped.
It is important to keep programs like golden visas or non-resident residency to continue to create jobs in rural areas, and I believe this will also help take pressure off Lisbon and Porto.
Is Portugal still a good country to invest in?
It is undeniable. Real estate investments rarely decline in value and in many cases provide the added benefit of being able to use the property for certain periods of time while the remainder provides additional income beyond the value of the property itself.
What are your strategies for the future? What goals do you want to achieve?
We have a project based on three main goals:
- <
T To occupy an important place in the residential real estate market, where we are already well established thanks to our consultants and the quality of our brand;
T To enter and develop in the commercial real estate segment, always working in partnership with local and international companies;
Develop in the commercial real estate segment, in particular within the framework of "golden visas", which are one of our key objectives, thanks to our profile and our activity on international markets. Currently, commercial real estate investments are one of the best options for golden visas because they don't have the geographical limitations inherent in the residential real estate market.
Interest and passion for writing led Leonor to journalism and a brief experience in copywriting. Leonor is happy when she can ask questions and tell stories. She is interested in the possibility of new horizons and has been working at idealista/news.pt since 2017, helping the sector stay fresh and "opening the windows of the house" to new perspectives..
Comment
Popular Offers
Subscribe to the newsletter from Hatamatata.ru!
Subscribe to the newsletter from Hatamatata.ru!
I agree to the processing of personal data and confidentiality rules of Hatamatata