Rents don't go down and stock doesn't increase

Several constraints are affecting this area of ​​the real estate market.


Despite the fluctuations we saw last year, and which we had the opportunity to mention here on the blog about a year ago, the various conditions generated by the circumstances we live in, as well as those existing in a market that continues to ensure investment with a return to all which have liquidity, means that the averages at the level of Portugal continue to rise.

Even with the expectation that there was a decrease as a result of the pandemic.


Thus, it demonstrates itself as a market area that is attractive to investors and that has attracted individuals and companies, particularly from abroad, as it remains stable and has the possibility of generating profitability for those who enter or develop activity in this segment.

Even when many of the market players have not given it due importance, or have relegated it to the second or third level, as its results are not as immediate as in the buying and selling market.


As mentioned in news published in the digital and physical press, the market has different variants that are influencing favorably at this time.


In an article by Idealista, the existence of three factors influencing the market is mentioned:


first, low mortgage interest rates stimulate demand to buy a house;

second, there is high liquidity in the market, both for investment and for individuals;

third, the real estate market is resilient to other markets such as capital


Whether these variables are the main responsible or influencing factors for the activity in the market and in this segment, that is, the existence of a great fluctuation in terms of behavior, both by consumers and different actors, what is certain is that there is still a positive variation .

Even though in the biggest urban centers there has been a break, the rest of the territory seems to "animate" with the movement "Covid" of many.


Naturally, the circumstances and central interventions, whether due to the maintenance of low interest rates, the activity around inflation, the contingencies in terms of the development of new projects (namely the increase in the price of raw materials and labor costs), or even the postponement of situations such as those related to moratoria (for companies and individuals), has created the conditions for the market not to behave as expected.


In an artificial way, with speculation or other factors, how will this market continue to behave, which has seen so many entries and interest in the development of projects, whether by private or public initiative?


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