Reflecting on the last decade, how has JLL evolved in tandem with the Portuguese real estate market?

Over the past ten years, JLL has grown substantially alongside the market. Six years ago, the market was valued at around EUR 1.5 billion, and despite a recent dip compared to 2019, it stands at approximately EUR 2 billion now. Portugal, historically appealing but not as prominent, faced real estate challenges during the financial crisis, requiring intervention from the International Monetary Fund. The rental law reform in 2013 facilitated market revival, attracting global investors. Initiatives like the Golden Visa and NHR programs further elevated Portugal as a real estate hotspot.

With the recent limitations on the Golden Visa program, what impact do you anticipate?

Fortunately, despite limitations, Golden Visas retain relevance, particularly along the coast, where investors can acquire commercial real estate, such as shops or office spaces. While the structural change will have an impact, it may not be as detrimental as feared. In 2021, only around 1,000 properties were sold through the Golden Visa program out of over 190,000 total property sales, indicating a minimal margin.

Foreign capital represented a significant portion of investment in Portugal. How was it distributed among different geographies and investor types?

Indeed, international sources accounted for 80% to 90% of Portugal’s property investment, with notable investors from the UK, Belgium, France, the US, and some Asian countries. At JLL, we facilitate transactions with clients from approximately 50 nationalities, with half of our deals involving foreign clients, reflecting a diverse global reach.

Residential property witnessed a record year. What sustains this high demand despite supply shortages?

The residential surge results from a decade-long absence of new products in the market. The pandemic emphasized the importance of modern, comfortable homes, creating an increased appetite for residential properties. However, the middle-class segment suffers due to construction cost escalations and slow licensing processes. High-end products remain in demand, but focus should shift to addressing middle-class housing shortages through improved public-private collaborations.

Why do international companies favor Portugal for new office locations?

Portugal attracts companies due to its exceptional quality of life. Competitive labor costs, skilled workforce, and a relaxed lifestyle entice businesses. Lisbon’s office market is witnessing growth with 610,000 square meters of upcoming office buildings, 42% already under construction, demonstrating an upward trend. Sustainability is a key aspect, with growing interest in ESG evaluations and certifications.

What are the primary objectives for JLL in the next few years?

Our primary focus is delivering digital solutions empowering clients to make informed asset decisions swiftly. We aim to provide accessible yet sophisticated market data, software for instantaneous portfolio valuation, and architecture & design programs allowing comprehensive building adjustments. The goal is to streamline decision-making processes for our clients using innovative digital tools.