ENGEL & VÖLKERS SHOWS TRENDS AND WHO CHOOSES LUXURY
Lisbon, 17th November 2015 - The Engel & Völkers German group, international reference in the luxury segment in real estate sector and present in Portugal since 2006, shows a 150% total sales volume increase, compared to the same period last year. In all stores operating in national territory, the buyer's investment varies according to the properties and the locations. In what concerns to square meter price, they can oscillate between 1.500 and 10.000 euro’s, depending the country’s region, property location, features and typology.
This Monday in Lisbon, the brand brought together franchisees, managers and officers, including Philipp Niemann, EMEA (Europe, Middle East, Africa) Engel & Völkers Managing Director. The meeting aimed to share information, analyze the markets where each store is inserted and present the news for 2016.
Choices for all tastes: beaches, urban areas and historical places
From north to south, is wide the choice of those who prefer to live Portugal, but in key locations. In the Algarve, holidays chosen destination by many par excellence but also by a few as place of residence, the most wanted locations for buying or leasing a property are Quinta do Lago and Vale do Lobo. Here, depending on the site, with the golf course and/or sea view, prices per square meter are between 5.000 and 7.000 euro’s. Home seekers in these locations primes for houses, spacious areas, with three to five bedrooms, near the beach and golf courses. For example, a four bedrooms house can cost between 1.2 million and 8 million euro’s.
Overall, the properties average selling time can range from six months to just over a year, depending on location and the property value.
“Portugal is fashionable”
The Portuguese capital raised one place in the list of European cities that received more visitors and this year takes the Global Destinations Cities Index, MasterCard 14th position. In global ranking, Lisbon is in the 35th position among 132 cities. Attracted by the weather, culture and country’s safety, many tourists end up choosing Portugal to invest and/or reside part of the year, which has helped to dynamised real estate.
"We are very confident on the property market development in Portugal. The growth and positive evolution showed clearly demonstrate this. It is a fashionable country," says Phillip Niemann, EMEA Managing Director. According to him, Portugal attracts more and more foreigners who see in the real estate sector, particularly the luxury segment, a safe investment and high potential return. In the most of the cases,they buy to value or to rent, for second home or for holidays residence.
Overall, in addition to national residents, the main clients of Engel & Völkers are worldwide privates. Golden Visa clients are mainly from Europe, Middle East, Africa, Brazil and China and are investors/buyers with different profiles and professional status.
Golden Visa and tax incentives attract foreign clients
The government incentive programs, such as Golden Visa and tax benefits for non-usual residents, captivate international investors from multiple backgrounds. Golden Visa customers come mainly from China, Brazil, South Africa and Middle East. They are, mostly, passive investors who put their house or property on the rental market. Currently, the importance of this incentive program is more relative than in its start-up, but still remains an important part of the business.
Clients who benefit from tax benefits for non-usual residents are from the North and Central Europe, such as Sweden, Denmark,Holland, England, Ireland, Switzerland, Belgium or France, and intend to live in Portugal part of the year. Unlike national clients, foreigners are, mostly, retired citizens or close to retirement age, being the French more elder, and investors and entrepreneurs.
These buyers seek, above all, houses with large areas for second homes and/or vacation condos with swimming pools, quality modern apartments in premium locations and near the sea, with an one million euro’s price averages.
Assessment and prospects for 2016
In Engel & Völkers group shops operating in Portugal, the balance is positive. For successful results, in addition to the portfolio, the growing interest of foreign buyers has contributed, combined with the prices stabilization tendency and incentive and tax benefits created programs. All these factors come together with the country's potential tourism opportunities that cities are creating at a household level. This context has raised the confidence level in the luxury real estate market, leading to increased inquiries from potential buyers and, consequently, business achievements. The result was a 150% increase on the sales number made by Engel & Völkers in Portugal in the first nine months of the year compared with last year equal period.
The market development has led to the rehabilitation of degraded buildings, driving the dynamics of the cities centers and their economic activities. Part of this recovery was targeted to the tourism sector - hotels, boutique hotels, short term apartment rentals and hostels - a trend which is expected to slow down and lead to new intended housing and offices projects.
Excellence portfolio and premium locations
Engel & Völkers offers a prestigious extensive portfolio in the luxury real estate sector, covering historic houses to modern architectural designs, and the highest exclusivity, including for example, some of the most beautiful castles in Europe. Currently, the properties offer range for sale in Portugal are more than 800, with ranging values between 80.000 euro’s and 25 million euro’s.
In Portugal, the Engel & Völkers employs about 100 people, a figure expected to increase, due to the opening of new stores. The brand is especially rigorous in the selection of its partners, based on the candidates profile for franchisees. Engel & Völkers licensing system has won entrepreneurs and independent business owners in 37 countries on four continents and has more than 600 stores worldwide.