Notícias

Cavaleiro Machado & Associados, represented by its partner, Mr. Cavaleiro Machado, participated in the General Assembly of the World Franchise Council in Las Vegas, USA, as part of the delegation from the Portuguese Franchise Association.

The introduction of REITs in Portugal could lead to further increases in property prices. This comes at a time when, according to a December report by the Bank of Portugal, ‘in recent quarters, there have been some signs, albeit limited, of residential property prices being overvalued in aggregate terms, with more pronounced overvaluation observed at regional/local level’. Housing prices have risen by more than 30% since 2013. In Lisbon, last year alone, there was growth of over 20%. Industry experts admit that the arrival of SIGIs could lead to further price increases. ‘This is logical reasoning, as attracting more investment will lead to more demand, which will push prices up,’ says Pedro Coelho, director of Square, responsible for managing the CA Património Crescente real estate fund. However, the manager believes ‘that we should take a more structural and long-term view.’ He argues that ‘it would have been good if they had existed for longer’ and that ‘prices fall more quickly due to interest rate increases or increased supply than they rise due to the entry of REITs.’