Inflation to rise, interest rate climb and building costs pull. All of this, among other factors, taking place in an unexpected context of war and after a pandemic that insists on no truce. Luís Marques Mendes, member of the advisory board of Abreu Advogados, however, considers that there are positive indicators to note, namely those that aim to real estate sector. One of them is the fact that with the outbreak of the armed conflict between Russia and Ukraine, there are (even) more investors and companies winking in Portugal. “Right now, there is a phenomenon of business relocation for Europe. Portugal may have a good opportunity here,” he added.
According to the former minister, who was speaking at a conference held this Tuesday (June 7, 2022) in Lisbon, at the headquarters of Abreu Advogados, “there are good opportunities for the national real estate sector” in times of war . one of them is the tourismwhich can act as a lever for economic recovery at the national level, being “very important for the country”.
“There are also benefits to explore and deepen in the future, such as the security [que existe em Portugal], which is an even greater added value. From the point of view energetic, we are witnessing a revolution in Europe, with the crisis of dependence on Russia. I believe that [neste aspeto] sinus will be even more important. And even bigger than Base das Lages,” he pointed out.
“In the situation in which we live, what would it be today if there was a minority government or with a widget? Imagine this government in the current situation. It was to add one more problem to those that already exist”
Another aspect to take into account, and which Luís Marques Mendes wanted to praise, is the fact that Portugal currently has stabilityparticularly on the political level: “The only positive thing that has happened in Portugal in recent months is that the country has absolute majority government. There is no possible comparison from the point of view of efficiency and stability. Despite the disadvantages, it is advantageous. (…) In this context in which we live, what would it be today if there was a minority government or a contraption? Imagine this government in the current framework. It was to add one more problem to those that already existed. (…) If there was not a minimum of stability in Portugal, everything would be much worse”.
“Task force” to qualify the construction workforce
Luís Marques Mendes stressed that the Portuguese real estate sector is “strong and well structured”, but recalled that there are currently several risks, pointing out, in addition to those already mentioned – the rise in inflation, interest rates and building costs –, “the unpredictability in relation to the prices and the lack of skilled labor”. Regarding this gap, he made a suggestion: “It is important to try to create a ‘task force’, a training program specifically for this area”.
There is, however, no doubt about one thing. “O foreign investor who thinks of tourism thinks of Portugal and the foreign investor who thinks of immovable think of Portugal,” he concluded.