14 15

Sources: JLL, Colliers, INE, Global Property Guide

Improvements in the Portuguese and Lisbon-specific property markets have led to an increase in demand, which the existing real estate supply cannot satiate.

Between 2002-2015 there was a significant decline in Portugal s construction industry. The number of construction projects declined 90% between 2007-2014 alone, from 65,659 to just 6,785. Since 2015 there has been increasing numbers of new constructions, but levels are still well below the pre-2007 peak.

Sources: JLL, SIR and CBRE Research

Following more than three years of depression, house prices in Portugal began to recover in 2014 and have steadily been rising since. 35% of the country s 2018 residential property transactions were in the Lisbon region and property prices in the city s metropolitan area were up 7.2% in 2018 from a year before.

While prices have been increasing in Lisbon, they remain more affordable than other major European capital cities.

Rents in Portugal rose almost 30 index points between Q2 2016-Q4 2018, according to Confidencial Imobilario, with a 3.9% increase recorded between Q3 2018-Q4 2018 alone. The residential rental prices in Lisbon have experienced remarkable growth since 2012, which is expected to continue due to the city s lack of available rental stock.

Increase in transactions 2012-2017

„ Average sales price for new houses in Lisbon

Rental Price Growth 2017

+45.1% Cumulative Rental Price

Growth 2013-2017 Rental Price Growth

forecast over the next 5 years

Average long-term Yields forecast, short-term yields forecast to be

circa 5-6%

+27.3%

+15.4%

4%

+151%

Capital Appreciation forecast 2018-2022

+19.2%

Capital Appreciation forecast for 2019

+3.84%

LONDON PARIS

27,000 /sqm

18,000 /sqm

BERLIN

12,000 /sqm

MADRID

10,000 /sqm

LISBON

8,000 /sqm

SUPPLY AND DEMAND -

SALES MARKET -

RENTAL MARKET -

Portugal's housing market has been impacted in recent years by the country's growing student population. Since 2009 the number of international students studying in Portugal has risen to account for 13% of all students in the country, adding pressure to the already strained housing market. From the perspective of foreign buyers, Portuguese property's astonishingly good value and the government incentives for international buyers make it an extremely desirable market.

„ Student Population Evolution

„ Licensed Dwellings - New Constructions

Portuguese International