Alentejo Coast Housing Market Report Comporta
Andreia Pratas Administrative Manager
Cláudia Pereira Team Leader Comporta
Filipa Canelas Team Assistant
Sara Rodrigues Consultant Comporta
Francisco Mendes Consultant Comporta
Luís Ferreira Consultant Melides
Nuno Pinto Consultant Melides
Daniel Caspa Consultant Melides
Cláudia Chaves Consultant Melides
Viktoria Dimitrova Consultant Developments
Margarida Mendes Consultant Comporta
2 . Alentejo Coast Housing Market Report
Caros
leitores,
Dear Readers,
Ao longo destes anos foram muitos os desafios com que nos deparámos, os quais fomos ultrapassando, um após o outro, sempre com uma atitude de grande determinação de quem transforma as barreiras em pequenos obstáculos, fomos caminhando e traçando o nosso próprio destino.
Over the last years there have been many challenges that we have faced, which we have been overcoming, one after the other, always with an attitude of great determination of those who transform barriers into small obstacles, we have been walking and tracing our own destiny.
Começámos 2021 com uma estrutura de recursos humanos reforçada, atualmente somos treze colaboradores, e dispomos de dois escritórios físicos, um na Comporta e outro em Melides, de modo a poder prestar um serviço de excelência de acordo com as expectativas da E&V, mas sobretudo porque é o nosso Adn.
We started 2021 with a reinforced human resources structure, currently we are thirteen employees, and two public offices, one in Comporta and other in Melides, to be able to provide an excellent service according to the brand requirements, but above all because it’s our dna.
Em nome de toda a equipa da Engel & Völkers Comporta, deixamos o nosso sincero agradecimento pela confiança depositada no nosso trabalho. Cordialmente, Vitor Paiva Licence Partner
On behalf of the Engel &Völkers Comporta entire team, we reinforce our sincere thank you for the deposited trust in our work. Sincerely, Vitor Paiva Licence Partner
Comporta . 3
4 . Alentejo Coast Housing Market Report
INTRODUCTION
ABOUT IMOECONOMETRICS
ImoEconometrics and Engel & VÖlkers Comporta worked together to publish a joint report on the housing market in the Alentejo Coast (in the municipalities of Alcácer do Sal, Grândola, Santiago do Cacém, Odemira and Sines).
ImoEconometrics is a research and consultancy company, founded in 2005, focused on property market research and appraisal.
The report analyses the residential market conditions in the Alentejo Coast. Itexamines market performance and the major trends for 2021, covering topics important to you and your second home decisions, whether you are seeking insights on investing or selling.
ImoEconometrics is specialized in property market studies, commercial due diligence and feasibility studies and is a leading supplier of property price indices (housing and commercial) in Portugal. The ImoEconometrics 109 municipality house price indices constitute the most accurate independent house prices in Portugal. ImoEconometrics’philosophy is to develop honest collaboration with clients to help them make decisions that contribute toward the creation of competitive advantages and good return on investment. ImoEconometrics follows RICS regulations and is committed to the highest professional and ethical standards. Joaquim Montezuma PhD REV MRICS
Comporta . 5
Housing Transactions 2019
2020
1.488 (4,8%)
1.495 (+0,5%)
New approved projects
Completed Housing 2019
2020
251 (+93,1%)
186 (-25,9%)
Homes on sale (new and resales)
2019
2020
2019
2020
494
638
1442
1651
House Price Evolution 4Q 2019
4Q 2020
Transactions Alentejo Coast by Nationality (2019, %) Portugal International
89% 11%
Transactions Grândola New Resorts by Nationality (2019, %) (+13,2%)
(+3,6%)
Portugal International
30% 70%
METHODOLOGY
For this study, a comprehensive definition of the concept of second home was considered as initially proposed by Downing and Dower (1973). That is, a classic dwelling used as a non-habitual residence in a system of full ownership, with or without complementary services and infrastructures. This definition encompasses fully owned housing assets within tourist developments, as well as all other properties used as second homes, excluding partially owned assets. The use of a more comprehensive second home concept is justified by the fact that various types of second homes are competing in the same market. The definition excludes partial ownership because the specific characteristics of this type of ownership, and the price per unit area, are not directly comparable with that of fully owned assets. The geographic area under analysis encompasses the Alentejo Coast region that runs from the River Sado to Zambujeira do Mar, and in administrative terms, the municipalities of Alcácer do Sal, Grândola, Santiago do Cacém, Odemira and Sines.
6 . Alentejo Coast Housing Market Report
Just a 90-minute drive from Lisbon, the 29-km white sandy coastline of the Alentejo Coast has remained largely undeveloped. Recently, it has started to attract celebrities, politicians and even royalty to its beaches. Both national and international developers have launched new resorts and high-end residential projects, offering proximity and easy access to natural, scenic and recreational amenities, including golf courses, marinas, walking trails and cycle paths, together with facilities to play football, tennis, padel, volleyball and petanque. Several sources of information were used including data from Engel & VÖlkers Comporta listings and transactions, data from ImoEconometrics’ database, data from listings of the main developers and real estate brokers operating in the geographical area under analysis and data from INE and the Ministry of Justice. Additionally, as part of this market research, interviews were conducted with a sample of the major local property developers.
ECONOMIC OUTLOOK In recent years there has been a significant improvement of the Portuguese economy. Considerable progress has been made in the current and capital account with the maintenance of a surplus slightly below 2% of GDP over the period 2018-20, allowing a continued gradual reduction in the level of inflation. The economic recovery continued in 2017 and 2019, driven by tourism, exports and the recovery of investment, along with a moderate growth in private consumption. The economic recovery allowed further reductions in the unemployment rate, with a reduction of 6.2% in unemployment at the end of 2019. The growth in exports reflected the evolution of external demand and gains in market share. The outbreak of COVID-19 has caused an unprecedented shock in the world economy. This has been a dramatic event and a temporary pullback. The current recession is synchronized (it occurs worldwide) and is associated with the great uncertainties of the virus cycle. However, global economic prospects have been improving markedly in recent months, helped by the gradual deployment of effective vaccines, central banks´ monetary boost and governmental support measures. Low interest rates and the extension of credit default have contributed to minimizing adjustments in residential real estate prices worldwide. There are signs that economies are coping better with measures to supress the virus, helping to improve confidence in housing markets.
The recession of the Portuguese economy in 2020 has proved to be less severe than previously expected. The Portuguese GDP in 2020 declined by 7,6% and the unemployment rate was 6,8%. Remarkably, the majority of Portuguese firms were able to retain workers and employment with more than one year of tenure increased in the fourth quarter of 2020 compared with the same period in 2019, notwithstanding the deeply negative impact on the hospitality sector (e.g. hotels, restaurants and cafés). During the period 2021-23, the Portuguese Central Bank foresees a recovery of the Portuguese economy, assisted by the gradual control of the pandemic, by the support of approved economic policy measures and again the low interest rate environment.
DEMAND From 2014 to 2018, the number of house transactions in the Alentejo Coast recorded an impressive annual average growth rate of 18% (CAGR = Compound average growth rate). In comparison, the number of new properties sold registered a smaller increase during the same period. In 2010, new house sales represented 35% of the total house transactions compared with just 17% in 2020. During 2021, it is expected that existing homes continue to represent the bulk of property transactions (see graph 9).
Comporta . 7
In 2020, the total number of house transactions in the Alentejo Coast market was around 1,5 thousand, a relatively stable number compared with 2018 and 2019 (graph 1). The housing demand in the Alentejo Coast grew at a high pace in the third and fourth quarters of 2020, recovering the ground lost during the second quarter of the same year. The municipality of Grândola concentrates most of the resorts and new residential projects in the Alentejo Coast and represented, in 2020, 19% of the total transactions in the region. Remarkably, the houses sold in the Grândola Municipality during the second semester of 2020 surpass 2018 levels(graph 3). The Alentejo Coast overall has followed a similar pattern, after a minor dip in the first quarter of 2020 and an intense decline in the second quarter, the housing demand rallied back in the third and fourth quar-
ters of 2020 at a growth rate that exceeded recent averages. The number of homes purchased by foreign buyers in the Alentejo Coast decreased since the beginning of the Covid-19 pandemic with Portuguese buyers driving most of the sales in 2020. Grândola displayed different behaviour from the rest of the Alentejo Coast. The new residential projects in Comporta maintained the preponderance of foreign buyers in 2020, representing between 55%-80% of new house transactions according to poll data collected from property developers in the area. The over all demand behaviour shows the attractiveness and resilience of the Alentejo Coast housingmarket, supported by its proximity to Lisbon, natural and scenic amenities, services offered, climate and rural characteristics.
GRAPH 1 - EVOLUTION OF THE VOLUME OF HOUSING TRANSACTIONS IN THE ALENTEJO COAST(2010-2020, YEAR) 1563
1456 1182
1273
1489
1495
1371
1009 912 705
808
507 309 2010
2011
178 2012
221 2013
243
243
252
246
240
269
2015
2016
2017
2018
2019
2020
185 2014
New Properties sold
Total Number of transacions Alentejo Coast
Source: INE, Ministério da Justiça; calculation & data analysis ImoEconometrics
The low interest rate environment is probably with us for the next few years. Due to the scarcity of alternative invest-
8 . Alentejo Coast Housing Market Report
ment options, we anticipate that the share of capital that investors allocate to housing will remain strong during 2021.
GRAPH 2 - EVOLUTION OF THE VOLUME OF HOUSING INVESTMENT AND AVERAGE VALUE PER TRANSACTION IN THE ALENTEJO COAST (20010-20120, YEAR) 250
200
203
201 166
150
138
137 108 109
100
123 111 104
92
82
129
121
166 130 111
101
175
117
84 58
50 _ 2010
2011
2012
2013
2014
Average value per transaction (thousand €)
2015
2016
2017
2018
2019
2020
Volume of housing investment (Million €)
Sources: INE, Autoridade Tributária, calculation & data analysisImoEconometrics
Despite the difficult times caused by the Covid-19 pandemic, housing investment in the Alentejo Coast grew by 5% during 2020 compared with 2019. The year 2020 ended with a total volume of residential property investment of 175million euros. Grândola had the highest volume of residential property investment in 2020 (57 million euros), followed by Santiago do Cacém (32 million euros); Sines (31 million euros), Odemira (29 million euros) and Alcácer do Sal (113 thousand euros). The average value per transaction, mostly existing homes,
has been relatively stable since 2017, registering 117 thousand euros per transaction in 2020. The average price was higher in the Grândola municipality with 201 thousand euros per transaction, followed by Sines (125 thousand euros), Alcácer do Sal (113 thousand euros), Odemira (89 thousand euros), Santiago do Cacém (77 thousand euros). The resorts and new residential projects located in the Grândola Municipality have been transacted at much higher prices, with prices ranging from 400 to 1200 thousand euros, depending on the property type, location and project. The average transaction price in Grândola’s resorts (new and resales) is 585 thousand euros.
Comporta . 9
GRAPH4 - EVOLUTION OF THE HOUSING TRANSACTIONS IN THE ALENTEJO COAST (2016-2019, YEAR) 1415 1326
1242 1144
129
2016
2017
Nr. Transaction international buyers
148
163
2018
2019
Nr. Transaction national buyers
Source: INE, Ministério da Justiça - Direção-Geral da Política de Justiça; calculation & data analysis ImoEconometrics
In 2019, according to the Direção-Geral da Política de Justiça, the top five foreign buyer nationalities in the Alentejo Coast were German, followed by British, French, North American and Spanish. If the German buyers represented the highest number of housing property transactions and investment in the Alentejo Coast, the American buyers recorded the highest median purchase price. The distribution of these nationalities is not uniform across the Alentejo Coast. According to Vasco Cunha Mendes, the French property buyer prefers Comporta, a very popular destination within the French community, while the German buyer would rather buy a rural property located outside Grândola. John Dwyer mentioned that the French were early buyers in the Alentejo Coast attracted by bigger plots. José Botelho reported that the Covid-19 pandemic did not seem to discourage international buyers from buying in the Alentejo Coast. During 2020, new trends emerged, one being the influx of North American and Mexican buyers together with more traditional French, Swiss and Belgian buyers. Moreover, there is a growing trend of younger
10 . Alentejo Coast Housing Market Report
international households actively looking for “second” homes in the Alentejo Coast. Interestingly, some high-end new residential projects in Grândola have been selling mostly to North American buyers. According to João Madeira the amount spent by international buyers is marginally higher than the Portuguese buyers. Vasco Cunha Mendes reported that the new home transactions typically range from 500 to 1200 thousand euros in Comporta.
SUPPLY At the end of the first quarter of 2021, the total supply of houses on sale in the Alentejo Coast was approximately 1,65 thousand units, an increase of 15% compared with the end of 2019. The main supply was in the municipality of Grândola (43% of all houses for sale), Santiago do Cacém (23%), Alcácer and Odemira (13%), whereas the municipality of Sines represented just 8% of all houses for sale (see Graph 6).
GRAPH6 – SUPPLY VS. DEMAND AND AVERAGE TIME TO SELL BY MUNICIPALITY (MARCH 2021) 717
372
209
322
281
227
414
251
212
11
30,6
7,9
10,8
6,7
Alcácer do Sal
Grândola
Odemira
Santiago do Cacém
Sines
Total Supply
Nr. of Transactions
Time to Sell (Nº of months)
Sources: Engel & VÖlkers Comporta, real estate portals and ImoEconometrics database
The current house supply in the Alentejo Coast is still low compared with potential demand, on average the houses take around 13 months to sell. The new construction in resorts is still minimal. Sines has the lowest supply/transactions ratio and an average time to sell of just 7 months. Grândola concentrates 40% of the total supply in the Alentejo Coast and records the longest selling time. Much
of the Grândola supply is used houses and the number of new houses is limited and remains below the levels needed. According to Vitor Paiva, Grândola is in an expansion phase with several new residential projects in the pipeline. These projects should reach the market between 2022 and 2024; thus, meeting the rising demand of investors for new residential projects.
GRAPH7 – DISTRIBUTION OF HOUSES ON SALE BY TYPE (MARCH 2021, %)
22%
22% Detached houses
53%
53% 25%
Detached houses
Farms
Farms
Apartments
Apartments
25%
Sources: Engel & Völkers Comporta, real estate portals and database ImoEconometrics
More than half of the housing on sale aredetached houses (53%), and mostof this supply is resale (see Graph 8).
Today the availability of ready-to-move-inhomes within resorts in the Alentejo Coast is extremely low and it is not expected to change significantly over the next few years.
Comporta . 11
GRAPH8 – DISTRIBUTION OF HOUSES ON SALE BY NEW SALES AND RESALES (MARCH 2021, %) 6%
6%
New Supply
New Supply
Resales
Resales 94%
94%
Sources: Engel &VölkersComporta, real estate portals and database ImoEconometrics
The supply of new homes on sale has been decreasing since 2011 due to the plunge in housing construction. The new home supply has been unable to keep pace with demand. In March 2021, just 6% of homes for sale in the Alentejo
Coast were new houses. The Grândola municipality concentrated most of the newly built homes in the Alentejo Coast (84%), followed by Alcácer do Sal and Sines with 9% and 8%, respectively.
GRAPH9 – CONSTRUCTION OF NEW HOMES AND LICENCES TO BUILD NEW HOMES IN THE ALENTEJO COAST (YEAR) 638
494
476 397
239
283 225 120
2010
2011
2012
2013
2014
2015
Nr of new house properties built
186 93
75
251
251
206
203
2016
96
2017
130
2018
2019
2020
Nr of energy certificates issued - new building licences
Sources: INE e ADENE, calculations ImoEconometrics
From 2017 to 2020, starts and completions grew gradually (see Graph 9). In 2019 and 2020, starts continued to grow strongly reaching the level seen before 2010. During 2020, the number of licenses to build new dwellings increased by 29%. The forecast for 2021 is that the
12 . Alentejo Coast Housing Market Report
year will end with just over 100 completed homes in the Alentejo Coast. This residential construction output is still low considering historical housing completions and actual demand. It is expected that the gap between supply and demand of new housing units in the Alentejo Coast should start to narrow after 2023.
PRICES House prices (based on bank appraisals) in the Alentejo Coast have increased by 41% since 2015 (see Graph 10).
The average house prices in the Alentejo Coast have already surpassed the 2006 peak, by 6%.
GRAPH 10 - HOUSE PRICE DYNAMICS INTHE ALENTEJO COAST (ALL HOUSE TYPES) (1Q2010-4Q2020; BASE 100 =1Q2009, HOUSE PRICE INDEX BASED ON BANK APPRAISALS) 105,0 100,6
94,4
93,7 93,2
91,6
90,6
89,9
87,6
86,4 81,6
83,7
83,8
92,1 90,7
84,6 87,3
80,5
T1-2010 T2-2010 T3-2010 T4-2010 T1-2011 T2-2011 T3-2011 T4-2011 T1-2012 T2-2012 T3-2012 T4-2012 T1-2013 T2-2013 T3-2013 T4-2013 T1-2014 T2-2014 T3-2014 T4-2014 T1-2015 T2-2015 T3-2015 T4-2015 T1-2016 T2-2016 T3-2016 T4-2016 T1-2017 T2-2017 T3-2017 T4-2017 T1-2018 T2-2018 T3-2018 T4-2018 T1-2019 T2-2019 T3-2019 T4-2019 T1-2020 T2-2020 T3-2020 T4-2020
78,6
Source: ImoEconometrics
The growing national and international awareness of the Alentejo Coast has helped to increase the attractiveness of investing in the region’s housing market, together with the Portuguese investor immigration programs (Golden Visa) and fiscal policy (Regime for Non-habitual Residents) that have been successful in attracting wealthy third country and intra-EU investors to invest in housing in Portugal.
The very low interest rates, governmental stimulus and the pandemic-friendly features of the Alentejo Coast region supported the positive house price trend during 2020. House prices are rising in most of the municipalities in the Alentejo Coast because of the pandemic, not despite it.
Comporta . 13
GRAPH 11 - AVERAGE HOUSE PRICE TRANSACTIONS DYNAMICS (1Q2016-4Q2020; €/M²) 1300 1200 1100 1000 900 800 700 600
Q
Q
120 16 220 16 Q 320 16 Q 420 16 Q 120 17 Q 220 17 Q 320 17 Q 420 17 Q 120 18 Q 220 18 Q 320 18 Q 420 18 Q 120 19 Q 220 19 Q 320 19 Q 420 19 Q 120 20 Q 220 20 Q 320 20 Q 420 20
500
Alcácer do Sal
Grândola
Odemira
Santiago do Cacém
Sines
Source: INE based on house transaction values.
The municipality of Grândola has the highest average house price transaction in the Alentejo Coast (1286 €/ sqm), followed by Sines (1275 €/sqm) and Alcácer do Sal (1167 €/sqm). These average house prices reflect the fact that the percentage of new home sales have been very low in the region.
Grândola registered the highest and most impressive increase in house prices since the first quarter of 2016 (67%) followed by Odemira (41%), Santiago do Cacém (29%), Sines (28%) and Alcácer do Sal (25%).
TABLE 1: PRICES OF HOMES ON SALE PER SEGMENT IN GRÂNDOLA (2021, MARCH) Grândola
Percentile 5%
Average
Percentile 95%
Detached House resales (€/m² GBA)
1.500
3.500
6.000
Apartment resales (€/m² GBA)
2.000
3.600
5.400
Detached house first sales (€/m² GBA)
3.100
4.260
5.100
Apartment first sales (€/m² GBA)
3.500
3.850
4.550
750
1.700
1.900
Resort Plots (€/m² GBA) Sources: Engel & Völkers Comporta, real estate portals and database ImoEconometrics
There is significant heterogeneity across the Alentejo Coast in terms of clientele, residential product on sale and house prices. As mentioned before the Grândola municipality concentrates most of the supply of new residential projects and resorts that are targeting an upper market segment. The average existing apartment price on sale in Grândola was 3600 €/sqm and range from 2000 to 5400€/ sqm, whereas the prices of new apartments located, mostly within resorts, range from 3.500 to 4.550€/sqm.
14 . Alentejo Coast Housing Market Report
Santiago do Cacém and Odemira municipalities traditionally target mid-segment housing and much of the second homes supply consists of old farms (over 45%). The average existing detached house price on sale in Santiago do Cacém and Odemira was 1220and 2350 €/sqm, respectively (Table 2). Sines has the highest population density in the Alentejo Coast and its housing market is mostly driven by first home
buyers. The housing demand evolution in Sines has been related with the Port of Sines. This relationship should be reinforced by the expansion work on Terminal XXI during 2021 and the new multi-billion euros hyperscale data centre campus. The new campus in Sines will consist of 450 MW and will represent an investment up to 3,5 billion eu-
ros. The existing apartment price on sale in Sines was 1970 €/sqm and ranges from 1100 to 4020 €/sqm (Table 2). The scale of the new investments in Sines will change the structure of the demand and is expected to have a positive effect on local house prices.
TABLE2: PRICES OF EXISTING HOMES ON SALE PER SEGMENT IN THE ALENTEJO COAST (2021, MARCH, TYPE OF HOUSE) Alcácer do Sal
Percentile 5%
Average
Percentile 95%
650
2.140
5.180
1.100
2.120
3.100
Percentile 5%
Average
Percentile 95%
Detached Houses (€/m² GBA)
1.490
3.320
5.930
Apartments (€/m² GBA)
2.030
3.600
5.380
Santiago do Cacém
Percentile 5%
Average
Percentile 95%
Detached Houses (€/m² GBA)
500
1.220
2.550
Apartments (€/m² GBA)
600
1.250
2.100
Percentile 5%
Average
Percentile 95%
820
2.160
5.380
1.100
1.970
4.020
Percentile 5%
Average
Percentile 95%
Detached Houses (€/m² GBA)
400
2.350
3.930
Apartments (€/m² GBA)
550
2.220
3.900
Detached Houses (€/m² GBA) Apartments (€/m² GBA)
Grândola
Sines Detached Houses (€/m² GBA) Apartments (€/m² GBA)
Odemira
Sources: Engel &VölkersComporta, Real estate portals and ImoEconometrics; GBA= Gross Building Area
According to João Madeira, over the last 12 months, the gap between the asking price and selling price of houses in the Alentejo Coast region has been decreasing. The closing of this gap is due to the new supply shortage, together with increasing transactions and prices. Regarding the future, Vitor Paiva contends that the local
planning authorities have an important role to play in enhancing the attractiveness of the Alentejo Coast. This includes the construction of public beach access points and the development of infrastructures to assist in the creation and development of new businesses. John Dwyer also stressed the importance of the infrastructure being able to keep pace with the new market dynamic.
Comporta . 15
GRAPH12 – BUYING PRICEOF TYPICALLY 120-SQ. APARTMENT LOCATED IN PRIME LOCATIONS IN EUROPEAN CITIES (€/M²; MARCH2021)
31777
UK, London 19925
Switzerland, Geneva France, Paris
19199 14417
Austria, Vienna Finland, Helsinki
12567
Norway, Oslo
12424
Sweden, Stockholm
10489
Netherlands, Amsterdam
10355
Czech Republic, Prague
10335
Italy, Rome
9886 9460
Russia, Moscow Germany, Berlin
8863
Spain, Madrid
7469
Luxembourg
6909
Turkey, Istanbul
6873
Malta, Valleta
6866
Denmark, Copenhagen
6420
Portugal, Lisbon
5746
Slovenia, Ljubljana
5487
Greece, Athens
5430
Estonia, Tallinn
4787
Belgium, Brussels
4758
Andorra
4374
Slovakia, Bratislava
4368
Ukraine, Kiev
4212
Poland, Warsaw
4190
Latvia, Riga Hungary, Budapest Serbia
4184 3774 3359
Alentejo Coast, Comporta
3100
Lithuania, Vilnius
3245
Croatia, Zagreb
2968
Sources: Global Property Guide and ImoEconometrics for Alentejo Coast.
In comparison with international housing markets, Troia/ Comporta have very competitive housing prices, given the region’s attributes and the quality of the residential properties on sale (see Chart 12).
16 . Alentejo Coast Housing Market Report
The average house price per sqm in Troia/Comporta is significantly lower than most European cities. Indeed, average house prices in Troia/Comporta are lower than the house prices in cities located in countries like Lithuania, Latvia, Serbia, or Estonia.
RESUME AND CONCLUSIONS: • The residential prices in Grândola and Alcácer do Sal during 2020 performed much better than expected when the covid-19 pandemic started; • There has been a boom across the segment for resorts positioned in low-density costal locations like the Alentejo Coast; • The house prices are rising because of the pandemic, not despite it; • The average house transaction in Grândola, the municipality where the majority of new residential projects are located, grew by 23% during 2020; • The pandemic-friendly features of the Alentejo Coast helped the housing market perform particularly well during 2020. Many Lisbon residents fled the city during the coronavirus pandemic, searching for coastal homes with more space and fewer neighbours and good quality amenities and services; • Ending 2020 with a total volume of residential property investment of 175 million euros, residential investment is expected to maintain an upward trend during 2021; • The Portuguese buyers have been the main contributors to housing demand over the last 4 years. The international buyers accounted for 11% of total house transactions in the Alentejo Coast and they are expected to grow during 2021 and 2022. This percentage is significantly higher in the new residential projects, mostly located in Grândola, representing 60%-80% of the total house transactions. • The rise of the co-primary home in Grândola, where families spend equal time in the city and at their “second”homes; • The Alentejo Coast is starting to look increasingly attractive for affluent North American buyers; • There is still a lack of new housing supply in the Alentejo Coast. According to the pipeline, the gap between housing demand and supply should start to narrow only after 2023; • Residential investment in the Alentejo Coast is expected to maintain a positive trend during 2021 and 2022; • Residential demand performed better than expected in 2020 and the first quarter of 2021 suggests that the remainder of the year will remain strong at all levels; • The Alentejo Coast’s prime residential prices are very competitive compared with other European cities.
LISBOA, 30 APRIL 2021
Joaquim Montezuma de Carvalho, PhD MRICS REV Comporta . 17
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Comporta
Tróia Possanco Comporta Alcácer do Sal Carvalhal Muda Grândola Melides Santo André Sines Santiago do Cacém Porto Covo
Loja Comporta Avenida 18 de dezembro, 7. Carvalhal Melides Lounge Estrada Nacional EN261-2, 13. Melides
Comporta . 19
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20 . Alentejo Coast Housing Market Report