Despite the Covid-19 pandemic, foreign real estate investors in Portugal will continue to expand their businesses, especially outside Lisbon and Porto. Merlin Properties, Krest Real Estate Investments, and Kronos Homes will maintain their commitment to the Portuguese real estate market. Diário Imobiliário interviewed the CEOs of these major foreign development groups that are developing projects and investing in the national real estate market, and all unanimously stated that they are here to stay. Claude Kandiyoti, CEO of Belgian Krest Real Estate Investments, revealed that the real opportunity lies in exploring other locations beyond Lisbon and Porto. Merlin’s vice president and CEO, Ismael Clemente, announced that the company’s intention is to continue increasing its exposure to the Portuguese real estate market through selective investments in assets they consider to contribute to the current property portfolio as a whole. Saïd Hejal, founder and managing partner of Kronos Homes, adds that after going through a health crisis like the one we are overcoming, it is unquestionable that people seek safer places, and Portugal has built its reputation around that concept. “The country is seen as a safe haven, and I believe that the way it managed the pandemic only strengthened that perception.”

For the three major investors, Portugal enters the recovery race with all the necessary ingredients for a return to investment. Despite the significant price increase observed in recent years, Claude Kandiyoti assures that there are still many opportunities in the Portuguese market. However, he admits that not everything is rosy. “The biggest challenge for an investor in the Portuguese market is licensing. We have now reached a point where we calculate that, if all goes well, we will obtain a full license between two to three years. This is worse than before the 2008 crisis and does not seem to be improving,” he warns. This is also a problem pointed out by Saïd Hejal, who also believes that for Portugal to ensure medium-term recovery, speed and agility are needed. “To encourage buyers to maintain their investment, which is even more crucial at the moment, incentives are needed, such as exemption from paying IMT and IMI during the recovery period,” he says. However, Ismael Clemente considers that our market has some advantages that make it very competitive and attractive. “First, because its relative price is cheaper compared to other European markets, meaning there is a natural arbitrage yield. Second, and perhaps most importantly, is the strength of the market fundamentals, such as strong demand or lack of supply, which invite optimism,” he assures. The CEO of Krest Real Estate Investments indicates that Krest is now the largest Belgian investor in Portugal. “In fact, we feel more Portuguese than Belgian and see Portugal as a country where we have a real vision to invest and develop bold and inspiring projects,” emphasizes Claude Kandiyoti. He also adds that Portugal is one of the most appreciated countries in Europe. “And that has led to a fact: Portugal needs foreign investors more than ever, and foreign investors want to be in Portugal. That is the equation that Portuguese authorities must work on,” he emphasizes. Kronos’ responsible party also admits that the interest of foreign buyers continues. “We have no doubt that the interest of our clients – mainly foreigners and, in particular, the British community – will continue,” reveals Saïd Hejal, who also adds that at the Amendoeira Golf Resort, “we maintained commercial activity and contact with clients, despite the quarantine, using remote meetings and 3D visits that were already available before this situation. With this, we were able to proceed with deeds and promising purchase and sale contracts.” Merlin’s vice president and CEO also confirms that Portugal has so far and in an exemplary manner, faced the health storm created by the coronavirus. “It did so by setting an example of democratic unity and with prudence in decision-making. I believe that, with these good examples, the international community will positively value and build trust. And trust is the asset that counts when investors (many with fiduciary obligations) invest in a country,” says Ismael Clemente. This panorama brings a positive omen to the Portuguese real estate market, showing the willingness of investors to continue to bet on real estate in Portugal. It is worth mentioning that Krest Real Estate Investments has investments in housing, logistics, commerce, hospitality, and offices in Portugal and Belgium, and today presents the first Moxy brand hotel in Portugal, in Parque das Nações, Lisbon, on a plot of land next to which it will build an office building called K-Tower. It is also developing a mixed-use project in Porto and two residential projects in the Algarve. Kronos Home acquired the Amendoeira Golf Resort and the Belmar Spa & Beach Resort, both in the Algarve; and is promoting a gated residential condominium in Parque das Nações in Lisbon and Palmares Ocean Living & Golf, in the Meia Praia area, in Lagos. The resort will have 103 villas, 350 apartments, and a five-star hotel. Merlin is currently the largest listed real estate company in Spain. In Portugal, it holds a portfolio of assets worth around one billion euros, including various office buildings, the Lisbon Norte logistics platform, and two commercial spaces, Almada Fórum and Monumental. In January, it debuted on the Lisbon stock exchange through a dual listing, an operation in which the same shares traded in Spain are also traded on Euronext Lisbon. During this week, Diário Imobiliário will publish individual interviews with these investors. #investment #Krest Real Estate Investments #Kronos Home #Real Estate Market #Merlin Properties