Pedro Rutkowski, our CEO, was invited by Dinheiro Vivo to share his opinion on the current outlook of tourist real estate in Portugal. Find out his answers here, and discover the trends and challenges that lay ahead for this market.
What are the prospects for real estate investment in hotels this year?
Forecasts suggest that tourism demand in Portugal will recover in 2023, regarding portuguese tourists, and in 2024, when it comes to foreignes. In order to deal with the shortfalls felt in the last two years, and while waiting for the sector's full recovery, tourist investors will continue to focus on the diversification of their sources of income (restaurants, well-being, workspaces, coworking, spaces for conferences, among others), and to rationalize operating costs, by investing in sustainability, for example.
What will the main trends be?
I believe that Portugal now has an excellent opportunity to position itself as a green destination, differentiating itself from its main competing markets, and investing in nature and well-being tourism, taking advantage of the unique characteristics of our country. The growing demand for this type of tourism suggests that this offer will be the one that will recover the fastest and with the greatest investment potential, which is why it will be on the radar of investors.
How is the market behaving in this post-pandemic period? What are the differences in the market compared to last year?
Data for 2021 showed an 80% growth in the number of rooms and a 70% growth in the number of new projects in the tourism sector. By itself, these data already indicate that the market is growing and projects such as Ikonik Lisboa or Hilton Porto Gaia stand out. On the other hand, the pandemic boosted the growth of the Serviced Apartments segment, which is expected to continue to grow in Europe and, above all, in Portugal. For this reason, due to its high profitability and low cost structure, this segment is also highly sought after by investors.
What competitive advantages does Portugal have in the tourist real estate market?
Portugal has been recognized year after year as one of the best tourist destinations in Europe and the World. In addition to having a growing market, investors look to our country as a safe, peaceful destination, with good weather, good infrastructure and a perfect mix of beach, nature and culture. We still have many areas with potential to be explored, and a lot of room to grow and increase the tourist offer.
And what are the main challenges?
The way in which Portugal positions itself in the tourist investment real estate market may be limited by the scale of the country, which can translate into a lower number of opportunities and a slower pace of growth. In addition to this, the shortage of labor is a chronic problem in our country, especially in areas where tourism is more seasonal.
Read the complete Dinheiro Vivo article in this link, in which several market players share their views on this subject.