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Developers Cite Municipal Licensing as a Barrier to New Investment

21 February 2020 – According to the Portuguese Property Investment Survey, a cumbersome municipal licensing process and increased construction costs are helping to limit the supply of new residential construction projects. Other factors include developers’ concerns about possible trends in future demand and prices.

The survey revealed that 95% of the respondents saw the licensing process as the factor that most inhibits new construction projects. Eighty-four percent of the developers noted worries with increased construction costs. At the same time, almost three-quarters of developers expect prices and sales to stabilize over the coming three months, while the rest potential increases or decreases.

Nevertheless, 79% of the respondents stated that they are actively planning new investments, while 55% stated that they are looking to acquire land to launch new developments.

Original Story: Diário Imobiliário

Translation/Summary: Richard D. Turner