In the first six months of 2021, Century 21 Portugal recorded a turnover of more than 31 million euros, which shows an increase of 64% compared to the approximately 19 million euros reported in the same period of 2020. that the network was involved – also considering the sharing of transactions with other operators – exceeded 1134 million euros and shows an increase of 42% compared to the almost 800 million euros recorded in the first half of 2020. The property types most sought after by Portuguese families continue to be T2 and T3 and, between January and June this year, the real estate network carried out 7008 sales transactions, which represents an increase of 38% compared to the 5065 transactions carried out in the first half of the year. from the previous year. In the first half of the year, the average value of properties traded on the Century 21 Portugal network increased by 3% to 161 371 euros, compared to the average of 157 264 euros recorded in the same period last year. Despite the pandemic context, home sales prices continued to rise nationally. As for the rental market, in the first half of this year, 1708 transactions were carried out, 68% more compared to the 1014 transactions in the leasing segment registered in the same period last year. However, the average rent value, at national level, was situated at 817 euros, during the first half of 2021, showing a decrease of 2% compared to the average of 833 euros in the rental value verified between January and June 2020 Although the difference in this indicator is residual, it also confirms that the rental market is usually more flexible, very responsive to fluctuations in demand, as it has to quickly adjust to the disposable income of young people and families who are in the market looking for housing.
Ricardo Sousa, CEO of Century 21 Portugal, points out: “The results of the first six months of 2021 surpassed all the expectations we had estimated for this uncertain period and the invoicing values were the best ever. These indicators were also influenced by the factor of suspension of international customer purchase processes during the last year, and show that the real estate market has recovered its dynamics, which is mainly driven by changes in the Portuguese family life – marriage, childbirth , divorces, inheritances and the emancipation of young people – which occur even in a time of pandemic”. Bearing in mind that these are the areas of the country where Century 21 Portugal registers the overwhelming majority of real estate transactions, the exercise of observing was carried out, with greater detail, the dynamics of these markets, analyzing areas, types of properties and average values, as well as the respective comparisons with the same period of the previous year. In the first half of 2021, the average value of a house in the Municipality of Lisbon stood at 302 117 euros, while in the same period of the previous year this average value reached 321 656 euros, which translates into a drop of 6% in the average value of the properties traded. In line with the dynamics seen in prices in the Municipality of Lisbon, the average of the usable area of houses sold in the first six months of 2021 stood at 84 square meters (m2), while last year they reached 90m2. area decrease of around 7% in the properties traded in the capital. In the Municipality of Porto, the average value of apartments sold was 176,316 euros and the floor area was 81m2, while in the first half of the previous year the average value reached 179,082 euros and the floor area reached 88m2. Comparisons show a drop of 2% in the average value of properties and an 8% decrease in the floor space of houses. In the Algarve, the average value of properties sold in the first six months of 2021 was 152,824 euros and the average usable area was 82m2, while in the same period last year the average value was 149,896 euros and the usable area was fixed at 79m2, which reveals a 2% increase in the value of housing and a 4% increase in the average floor area of the properties traded.In the leasing segment, the Municipality of Lisbon presented an average rental value of 1018 euros, in the first half of 2021, 1% less than the 1032 registered in the same period last year. The Municipality of Porto recorded average rents of 592 euros, 9% less than the average rental of 654 euros in the first half of 2020, while the average rent amounted to 675 euros in the Algarve, an increase of 13% compared to 599 euros of average income in 2020.According to Ricardo Sousa, the interpretation of market dynamics in these regions reveals that “the purchasing power of the Portuguese increasingly limits the choice of their homes and is already impacting property values in the country’s two main cities. Sensitivity to the price factor increased during this period of pandemic, creating greater pressure on demand in the peripheral urban areas of Lisbon, where Portuguese families and young people are looking for housing adjusted to their needs, ambitions and purchasing power”. Between January and June 2021, 1102 transactions were carried out with international customers on the Century 21 Portugal network, which reveals an exponential increase of 55% compared to the 709 carried out in the same period of the previous year. The weight of transactions in the international segment has already represented 16% of the volume of transactions carried out in this real estate network, which reflects the resumption of business involving clients from other geographies. Although this indicator also reflects the suspension effect of foreign investors’ decisions in the national real estate market over the past year, given that in 2020 this was the market segment that suffered the greatest negative impact due to the pandemic context, the reality is that the The weight of international transactions in the first six months of this year surpassed the 14% recorded in 2019, before the pandemic. Another aspect to highlight in this first half of 2021 is the change in the profile of the international customer. For the first time, the United States of America was the dominant nationality, followed by France, Brazil and the United Kingdom. Ricardo Sousa, CEO of Century 21 Portugal, comments: “Many of the businesses suspended in 2020 are now being completed, which explains this strong growth in the international segment. The growth in demand from North American customers is surprising, which is justified by the popularity that our country is gaining in the US as a tourist destination”. Despite the challenges inherent in the pandemic context, in the first half of 2021, Century 21 Portugal maintained a solid growth of its national network, with the start of operation of another 15 branches throughout the country. Currently, the brand has 174 units in operation supported by a team of more than 3105 real estate consultants. Ricardo Sousa, CEO of Century 21 Portugal, concludes: ” The market is very dynamic in all segments and with a very active demand. The big challenge is the purchasing power of the Portuguese, whether for the purchase of their own house or for renting. In particular in the Lisbon Metropolitan Area, in the city of Porto and in the Algarve. The latest study carried out by Century 21 Portugal reveals that 45% of the Portuguese want to change their house, however, 29% admit they do not have the economic conditions to do so. Currently, real estate developers and investors are more attentive to this issue and to the opportunity to build and promote affordable housing solutions, which will create a new dynamic in the market”. Century 21 Portugal has been defending a concerted strategy between the entire value chain of the real estate sector and government entities, to create adequate policies to promote access to housing, especially for the Portuguese middle class, at national level. However, the city of Lisbon and the metropolitan region of Lisbon compete directly, with their international counterparts, on a scale and market dynamics that are totally different from the rest of the country. This factor can be enhanced with the adoption of a metropolitan strategy for this region can be truly competitive, at the international level, in attracting talent, companies and in the capacity to generate economic and socially sustainable development. Main challenges of the real estate sector:
• The public and private sectors failed in terms of providing housing solutions adjusted to the Portuguese middle class, in which more than 61% of the population belongs – 55% in the AML, where more employment opportunities are concentrated and where there is only 30% of adequate real estate supply – and that is the main driver of demand for housing in the national market.
• This gap, which has grown in the last decade, is a consequence of excessive regulation, lack of agility and flexibility in licensing, legislative and fiscal instability, PDM out of step with the current reality, compartmentalized municipal logics to the detriment of a metropolitan vision, efficiency failures for metropolitan mobility solutions, divestment in social housing solutions, transition from residential buildings to the tourist sector and massive investment in the high and luxury segment.
• Buildings, houses and infrastructure have a very long durability, crossing one or more generations. In this context, the policies that shape the demand and supply of housing imply a long-term perspective – forward looking – and anticipation of changes in the population’s needs, preferences and behavior, as well as “mega-trends” that affect economies and societies.
• These trends represent challenges for urban planning, housing policies and for the formulation of land use regulations, in a logic that must integrate environmental and metropolitan sustainability, as opposed to a purely municipal and local vision.
Published in MAGAZINE IMOBILIÁRIO ONLINE 29/07/2021