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null Deconstructing Portuguese Construction Costs

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Deconstructing Portuguese Construction Costs
17 feb 2022
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Clock 40 mins.
CATEGORIAS: AER Global AER Portugal Portugal Sector inmobiliario
ANALISTAS:
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Ignacio de la Torre
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Leopoldo Torralba
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Beatriz Cortez de Lobão
One has to go to a real estate developers event in Portugal, at least once in a lifetime. It’s a complete experience of enthusiasm and optimism. You’ll find everyone showing these wonderful photos with apartments, houses and condos, beautiful landscapes everywhere, fine sand beaches, wild waves, blue skies... Everything looks perfect. However, on closer scrutiny you’ll hear a common theme in most conversations these days: “What are we going to do regarding these high construction costs? They’re really high.” And indeed it’s a topic that requires a broader analysis: last week the Portuguese National Statistics Institute published an astonishing 7% increase in the construction costs from last year’s levels, and just for reference pre pandemic the yearly change was no more 2-3%. It is quite an increase.
dot What is happening with construction costs in Portugal?
dot What may be the Impact on home developers?
dot And on constructors?
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