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Portugal’s Palaces and Farms Are on Investors’ Radar

26 April 2018

Interest in real estate investments is no longer limited to the historic centres of Portugal’s main cities, Lisbon and Porto. Luxury properties in rural areas are also increasingly targeted by Portuguese and international investors.

A good example of this new trend is the Quinta das Regadas, in the municipality of Santa Maria da Feira, owned by Millennium BCP. The property is a well-known and unique manor that is in a reasonable state, which is relatively rare in the country. The estate has caverns and a lake and was acquired by a Portuguese investor for nearly half a million euros.

The Urban Group, a Santa Maria da Feira-based franchise of the real estate company Arcada, was responsible for the sale of the iconic Quinta das Regadas. According to Arcada’s CEO, Emanuel Poças, “an aggressive marketing plan was carried out with the objective of completing a deal in a quick but surgical way so that the value of the property was preserved and surprisingly it was the target of many interested parties. It is proof that the market is ebullient and that the differentiated service undoubtedly translates into the best results.”

The executive highlighted the fact that it is an extremely well-located city that benefits from transportation links that connect it to rest of the country. The city is a mere 10 minutes from Porto and still has fairly low prices per square meter for real estate, and little of the speculation that is affecting the so-called big cities, “which permits access to unique luxury properties, located within the urban environment, at a fair price.”

Companies linked to the tourism sector are looking for these kinds of assets

According to Mr Poças, this asset, as well as others of a similar nature, are arousing the interest of investors. Arcada’s portfolio has a number of comparable properties which are attracting the attention of companies linked to the tourism sector that are seeking such assets precisely because of their unique characteristics and the surrounding environment. The city is receiving ever greater numbers of tourists, and they believe that it is time to invest in the area.

“We have people such as doctors and lawyers who are looking to escape the city centres, without necessarily having to give up their proximity to those centres and transport links. We also have large French, Brazilian and Swiss investors who are looking for this type of investment, where their money goes a lot further than in their home markets,” Arcada’s CEO explained.

Mr Poças referred to the Urban group, which owns Arcada Feira, saying that it is well positioned in the market, and has made itself a benchmark in the real estate industry.

“[The company] is well positioned in all market segments by having a well-trained team with very diverse skills, which allows it to study each property carefully and define tailored ways of working with each of them, depending on the type of product and target audience. Each case is a case, and each property is a property. The company develops all of its marketing and communications based on its analyses of each product. Arcada Feira looks for diversity in its portfolio to satisfy the largest possible number of people,” he explained.

We are seeing unbridled demand, and in many cases, speculation

At a time when the real estate market is very dynamic, Arcada’s executive stresses that despite this, the company acts with a measure of caution, “keeping an eye on the guidelines that brought us to where we are today. We are aware that the market is cyclical in nature, and that we are responsible for alerting our clients of that risk. As in other cities, such as Lisbon and Porto, we are currently seeing unbridled demand, and in many cases, speculation,” he stated. That is why the company has taken steps, and Emanuel believes that our customers need qualified professionals in this area, “above all to guarantee the best possible investment in such a fickle market.”

Portugal’s north is demonstrating that it has increasing potential, and Feira is one of the largest municipalities in the District of Aveiro, so the company regularly deals with highly varied types of buyers and sellers. “Undoubtedly the highest level of demand is concentrated in the centre of Santa Maria da Feira, but in reality, the largest number of transactions is located in the peripheries due to the greater supply and the price differential between the centre and the peripheries,” he stated. Mr Poças also said that the supply in these areas is still balanced. “The only issue is a client’s desire to live in the centre …. there is not much more room to grow in the centre itself, and people are beginning to realise that the city’s growth will be concentrated in the peripheries, which is already happening. Prices are also beginning to rise in these areas due to the increase in the demand for housing and expansion,” the executive reasoned.

Buyers want to buy with confidence

Asked about the evolution of prices, Mr Poças went on to mention that there is speculation in some specific cases, mainly because people are trying to sell without using an agency, “which leads to a lack of knowledge of the market, which sometimes causes values to be inflated. That is why we are increasingly sought by investors and buyers precisely to ensure a safe purchase. Although some people want to sell on their own, this cycle will begin to reverse itself. It is inevitable, buyers want to buy with confidence,” he concluded.

Original Story: Diário Imobiliário

Translation: Richard Turner