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ECONOMY ECONOMY

Sources: InstitutoNacional de Estatistica (INE): 2017 CBRE estimate

PORTUGUESE RESIDENTIAL MARKET - Since 2014, renovation projects in Lisbon and Porto s city centres have revitalised previously uninhabited buildings, following a period of low construction activity between 2009-2016. New construction projects, of reduced size, are beginning to appear throughout the country.

„ Portugal's recovery is well entrenched

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EMPLOYMENT AND GDP GROWTH - Now at a fifteen year low, Portugal's unemployment rate has declined 10% since 2013 to just below 7%. Showing no signs of slowing, the country's unemployment rate is projected to close 2019 at 6.2%.

The national GDP increased 2.7% to USD217.6 billion in 2017 from -3.0% in 2009. Portugal's GDP is projected to rise by approximately 2% per year in 2019 and 2020, in line with the Eurozone.

Portugal s residential market has seen an increase in demand through foreign investor activity, mainly driven by two government initiatives: the Non-Habitual Residents Tax Regime, introduced in 2009, and the Residence Permit for Investment Activity ( Golden Visa ) in 2012. The domestic market is also returning, as the country s sustained economic growth and reduction in unemployment rates, as well as more competitive mortgage conditions, are increasing confidence levels.

Sources: Santander Trade, OECD, knight Frank

„ Residential Completions in Portugal

„ Residential Sales in Portugal

Following the Global Financial Crisis and ensuing Eurozone debt crisis, the Portuguese government implemented wide-ranging structural reforms. Employment has also picked up significantly, helping to spur the country's economic recovery and radically altering the government's fiscal position.

PORTUGAL'S ECONOMY -