Spain 
Italy 
Greece 
Redevelopment Ensures Growth in Luxury Real Estate
19 July 2017
The high-end of the market “has been generating constant and new real estate solutions”, highlighting “the positive transformation” that the sector is currently undergoing. According to Isabel Ravara, a director of RE/MAX Siimgroup Collection” urban redevelopment has been increasing and ensuring the growth of this segment.”
In the same manner, “government programs destined to boost and support foreign investment have influenced the national economy, and have boosted Siimgroup’s results,” of which the high-end segment “represents 23% of sales.”
The main international clients are “Chinese, French and Brazilian, but other nationalities already include other South Americans, South Africans and clients from the Middle East,” says Isabel Ravara.
In the first five months of 2017, the luxury market represented a growth of 7% to 43% of the Siimgroup Collection’s sales compared to the same period in the previous year. The average transaction value of a Siimgroup Collection property is around 783,000 euros, representing a 6% increase in price, compared to the same period in 2016.
In Ravara’s view, the luxury segment represents a market “in which Siimgroup acts upon the experience that the group has acquired in the various cycles of real estate market.” She adds that “one must understand the luxury segment and characteristics that define it, to recognize and understand the consumers of this product and service, thereby defining and implementing marketing strategies, obtaining a current view of the market in Portugal, and knowing the trends and challenges that this market will present in the future. ”
With this, “Siimgroup brings together a group of stores, consultants, teams and departments that offer a unique and holistic service, offering complete, tailored solutions adapted to the individual clients’ needs.”
Favourable conditions
Looking from a broader perspective, Isabel Ravara believes that, “for now, the Portuguese real estate market is experiencing favourable conditions, where prices per square meter, despite increases in recent years, are still low compared to the rest of Europe.” On the other hand, “tourism continues to grow, which creates the need to redevelop real estate and public spaces, also requiring new infrastructure to accommodate the increased flow of visitors.”
Consequently, “we have seen an increase in demand, causing the market to heat up, necessitating rapid decision making from clients interested in buying or selling properties. However, real estate offerings are not yet keeping up with demand, though the market is showing signs of exploring new solutions,” she adds.
“Siimgroup is following the evolution of the current real estate market in a natural, quiet and positive way. Portugal has extraordinary quality of life, and it was inevitable that one day it would show up on the radars of local and international investors,” she concludes.
Original Story: Público – Imobiliário
Translation: Richard Turner