Market jitters over Brexit in Europe and Portugal’s current feel-good factor and political and economic stability is ironically pushing property investment away from London to Lisbon according to a study.
Portugal’s capital will be the top destination for property investment in 2019 according to PwC and Urban Land Institute.
“Lisbon will be the Nº1 choice in Europe for property investors” predicts the report assuring that Portugal’s positive momentum in real estate investment > is set to continue.
Dubbed “the risking star” while other major markets are now peaking, attention is now focused on Lisbon as a “smaller, dynamic city”
“This year’s choice for overall prospects is Lisbon, rising 10 places to number one. Interviewees cite its “positive leadership” and the fact that it is seen as a “late-cycle play.”
“Portugal’s economy is growing healthily and its capital is now an international destination for companies, investors and tourists,” says the report.
Portugal’s “quality of life, relatively cheap property and extraordinary returns” are all cited as reasons that Portugal is shooting up various league tables. Next year it will overtake Berlin as the city to live, work and invest in.
“The demand for secure revenues in the coming year will be pivotal throughout the entire European property sector” says the study ‘Emerging Trends in Real Estate’. The majority of investors in Europe above all are looking to safeguard their capital. “They are not looking for high returns but security,” says the director of the European Investment Bank (EIB), quoted in the report and at a time when risks, particularly political instability, is proliferating.
Now in its 16th year, the report provides an outlook on real estate throughout Europe for 2019 and beyond.
The report is based on a survey carried out on 885 respondents across 22 European countries with 68% stating they are concerned about the availability of assets, 30% expect lower returns in 2019 and 80% are concerned about international political stability.
According to Global Investor “There is an enormous amount of risk in the system — geopolitical risk is everywhere, there is no safe haven today.”
The report also noted the “blurring of boundaries between traditional and alternative real estate” being a “fact of life” in the industry with investments in build-to-core and housing development in its various forms.
The report states that Brexit is “doubtless one reason why European political instability is second only to international political instability as the key social/political issue for the industry in 2019”.
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