Formidable fundamentals and the promises behind Simplex

Written by Helen Richards

The Portuguese real estate market is attracting an increasingly diverse range of investors and evolving into a mature and dynamic sector, as was revealed at the annual Portugal GRI 2024. 

Post-global financial crisis (GFC), investment was minimal, but as the market has developed and matured, a broader spectrum of investors, from core to opportunistic strategies, have begun to engage.

Buoyed by its strong fundamentals, Portugal has strengthened its position within the European real estate scenario. Both the retail and hotel sectors stand out as particularly strong areas driven by high visitor numbers and spending trends, with “consumers spending like never before”.

Though lucrative opportunities for investors are emerging, the limited size of the Portuguese market presents hurdles, as liquidity remains one of the most noted deterrents to investors.

This exclusive GRI report reveals in-depth insights shared among the market’s leading decision-players, including investors, lenders, developers, and asset managers, as well as invaluable perspectives from municipal representatives.

Portugal GRI 2024 facilitated invaluable dialogue between leading real estate market players and Portuguese municipal representatives. (Credit: GRI Club)

One of the most discussed topics during the conference was, undoubtedly, the Portuguese government’s newly introduced Simplex Urbanistico, marking a transformative shift in the country’s real estate regulatory landscape.

A suite of simplification measures has been introduced under the Simplex system. Significant among these is the reclassification of numerous operations:

• Licensing requirements have been downgraded to prior communication.
• Prior communication requirements have been further downgraded to exemptions.

Sentiment among developers and market players was overwhelmingly positive, with hope that the changes will bring more confidence, stability, and predictability to all sectors, ultimately fostering a more dynamic and efficient real estate market in Portugal.

Challenges must not be ignored however, and this was made clear throughout the conference, as discussions addressed the implications for municipalities, financing, future inspections and controls, and more.

Read the full Portugal GRI 2024 report for in-depth investor sentiments on Simplex, and more.