Coldwell Banker looks what we have experienced in Portugal, following one of the most atypical year for the real estate sector in over a decade, I wanted to invite you to reflect on the key challenges and the opportunities that come with it.

Resilience Amid Adversity:

The year kicked off with a number of global uncertainties, with conflicts affecting supply chains and the flow of raw materials for new constructions and the refurbishment of properties. Faced with all these challenges, the Portuguese housing market has been able to endure and adapt to the adversities. We at Coldwell Banker saw that houses have become an even bigger part of buyers lives with the evolution of remote working becoming embedded in the professional environment, this has redefined buyer needs, that now search for a space to work at home that, which in turn changed the real estate strategies we have.

The Rise of New Destinations:

With Portugal clinching the award for Europe's Leading Destination 2023 at World Travel Awards, the country amassed an impressive total of 17 awards in the 30th edition of what is often referred as the “Tourism Oscars”. In addition to being proud of our achievements as a country, this international visibility was reflected nationally, with buyers reaching out to Coldwell Banker looking for new destinations and new regions becoming a founding principle to purchase a property.

Technology and Innovation:

This past year was also marked by a technology revolution in the sector. We witnessed the rise of AI, digital platforms and virtual reality in showcasing the best features of a property. With AI we started to observe the insertion of “virtual butler” that can be programmed to automate most of the menial tasks we do every day. From fridges that automatically create a shopping list when you run out of milk, to AI functions that report problems and get immediate estimates for when your boiler is due maintenance. These new tools have started to change the dynamics of the sector and will continue to change at breakneck speed.

Credits: Supplied Image; Author: Client;

Sustainability within the sector:

As these tasks become more and more automated, the sights are now set on sustainable construction and environmentally conscious measures to offset and reduce the carbon footprint. We have started to see a growing demand for sustainable certifications, from the materials used for new builds to the energy certificates for properties. These have always been a concern for prospect homeowners from an efficiency perspective, yet today we see this as a basic necessity among buyers and investors. Coldwell Banker is seeing a more informed buyer, conscious of their carbon footprint and how to tackle it when making such a big decision, as buying a property.

Regulatory Challenges:

We couldn’t wrap-up 2023 without mentioning the regulatory changes and the announcements by the Government regarding housing and the sector. Over the last couple of months, we saw the approval of the package Mais Habitação, as well as the upcoming end of gold visas and of the non-habitual resident scheme. These three actions were designed with the goal to provide more access to the housing market in Portugal, however they were designed without taking the sector into account or even giving a voice to the sector, which would be pertinent given the experience we have on the matter. This year has been a journey of learning and evolution, of adapting and tailoring the way we work at Coldwell Banker to the current climate. However, it seems that the impending implementation of these measures will only damage investment opportunities in a country that has such a potential of capturing investment.

Credits: Supplied Image; Author: Client;

As we move into the new year, we at Coldwell Banker, hope that these not only provide a recap of the key events, but also shed light on possible future trajectories of the real estate sector in Portugal. Now, more than ever, it is imperative that all stakeholders in the real estate sector continue to collaborate and innovate to shape a sustainable and prosperous future.

For more information, please visit www.coldwellbanker.pt

Email: info@cbportugal.com

Phone: +351 211 311 797