market insight summer 2012

Market Insight Lisbon & The Silver Coast Summer 2012

LUXURY

Luxury is almost a buzz word in the real estate

sector but its definition differs among countries.

Location normally indicates the property’s value,

especially if it offers views (particularly water-

front views) and especial caracteristics such as

proximity to golf courses, beach areas, school

and central business distrits or downtown.

This classification also takes into account the

presence of surrounding homes, absence of cri-

me-rate, industrialization or unwanted commer-

cialization, customizations of the home, and his-

torical or architectural significance.

Perpetuity is in our opinion a condition for

luxury real estate classification. Size is not

important but living space cannot be compromi-

se. High-end finishings are a standard but don’t

subsititute charater in a property. The condition

for perpetuity is based on the law of scarcity

where the uniqueness of places (property, loca-

tion and usability) have a timeless perceived

value.

Luxury real estate entails greater responsibility

for agents who handle transactions than ordinary

real estate. Advertising to an international

audiance is mandatory to attract non-local

buyers, whereas ordinary real estate only gene-

rally requires local exposure. There are also

greater legal responsibilities for the luxury estate

agent, which often involve attorneys and anony-

mity issues.

Exclusive Penthouse Apartments in Chiado with panoramic views over the historic downtown area and Tagus river. The exclusivity of unique living spaces in a unique private residence condominium, built to set a new stan-dard in luxury and refiment in Lisbon city. 2 Duplex units with 4 and 5 bedrooms, wide living areas and private out-

door spaces. Price: POA

Exclusive Period dated apartments in Avenida da Liberdade ofering with wide spaces in the heart of Lisbon

Central Business Distrit. The apartment is composed of double living room, office, 3 bedrooms, one en-ensuite and kitchen. Wlaking distance to private schools, shopping areas, restaurants and a variaty of service, conviniente and leisure amenities. Price: POA


Four bedroom apartment in private residence condo-minium located in Lisbon historic centre, with several leisure and service amenities at walking distance. POA

Four bedroom apartment in private residence condo-minium located in central Lisbon with several leisure and service amenities at walking distance. POA

Contemporary 3 bedroom villa with double height cei-ling in the lounge area, excellent natural light, wide windows, private pool, terrace and a private garden bounded by Quinta da Marinha golf course. POA

Magnificent 3 bedroom apartment in the first line of the coast, offering panoramic views towards the sea. Integrated in a luxurious condominium in Estoril. POA

Four bed beachfront apartment in Cascais, offering panoramic views, wide spaces and individual terraces in all bedrooms. POA

Four bedroom apartment in private residence condo-minium located in central Lisbon with several leisure and service amenities at walking distance. POA

Four bedroom villa with private pool, mature garden offering full privacy. Located in a high-end area of Cascais, 5 minutes from the centre and golf courses POA


HOLIDAY

HOMES Choosing a holiday home is no easy Job. Not

only is the second most valuable investment a

person makes in their lives, but it also carries

with it a certain level of uncertainty especially

when it comes to the right location. Price is not

added to equation as people will only spend what

they can afford, and with the absence of banks

support, investing is really down to savings. The

market is fully transparent when it comes to

prices, as after spending some time looking at

properties through the Web, people get a pretty

good idea about what the market offers at each

price level.

What differentiates a good from a bad in-

vestment? Here are some mandatory guide

lines to make a good decision when it comes to

buying a home overseas:

1—Political stability—Its wise to look at coun-

tries that are Politically sustainable as they will

have an impact on the legal and fiscal part of

property investment.

2— Sustainable neighborhoods— communi-

ties are an important part of the equation. Look

for more established communities that can guar-

antee social life all year round. Skip over-

secluded areas that are only 100% operational

during the summer season, unless that’s exactly

what you're looking for

3—Views—Despite the difference in price it is

worth the extra money. Not only it provides an

outstanding lifestyle but it also guarantees a

higher demand on the resale market.

4—Terraces and other exterior areas—you

can compromise interior space as long as it pro-

vides outdoor space for BBQ or al fresco dinning

not to mention some of the best recharging mo-

ments laying down in a sun bed

This charming cottage is located in Quinta da Marinha,

a stunning complex in Cascais, walking distance from the beach and golf courses. Mature garden. €790,000

This villa boasts stunning views over the valley and the

sea towards the local beaches. The villa is approx. 15min from Sintra. Great charater. Price: €800,000

Contemporary design, panoramic views, unique loca-tion. 3 bedroom villa in the best spot of Praia D’El Rey Golf Resort. Price: P.O.A.

Hillside located offering open views towards the Atlan-tic Ocean, golf course and beach. Walking distance from restaurant, bar and gym. Price: €1,400,000


Impressive contemporary villa set in a hilltop with excellent views towards a vineyard area that surrounds the property. Outstanding design. 4 hectares POA

Four bedroom apartment in private residence condomin-ium located in central Lisbon with several leisure and service amenities at walking distance. Price:850,000

Contemporary 3 bedroom villa with double height cei-ling in the lounge area, excellent natural light, wide windows, private pool, terrace and a private garden bounded by Quinta da Marinha golf course.Pr:€625,000

4 houses hillside located of contemporary design, offe-ring panoramic views of the ocean, full privacy and high-end finishings. Featuring 3 bedrooms villas with private pool Price: P.O.A.

4 bed villa with ocean views, at walkimng distance from the beach The villa is fully equipped with garage and pool . 50 minutes to Lisbon. Price:650,000

2 Bedroom beach front apartment in in Praia D'El Rei resort, within walking distance to beach and restau-rants. Excellent terrace with panoramic views. Price: €350,000


EXECUTIVE

RELOCATION

Portugal is not just a great place for holidays,

surfing, golfing or site seeing. Our fabulous bea-

ches and singular weather conditions have posi-

tion this country as one of the best and more

exclusive residential tourism destinations in

Europe. But this is not the only source of inter-

national buyers in Portugal.

In the last 5 years international demand from

executives relocating to Portugal have register a

considerable increase. Africa has been one of the

reasons sourcing both sides of the market, Exe-

cutives realocating from Africa to Lisbon region

and international corporations using Lisbon to

establish commercial relationships with local and

african partners already established.

The brotherwood between Brazil and Portugal

has also generate some demand in the capital

city, with executives being relocated to Lisbon

due to the African connection but also as a fami-

liar place and our connection to Europe.

The international mba (Lisbon mba) is also

atracting international students and news of

foreigns studing Portuguese as a international

language as also receive some attention from

buy-to-let investors.

Lisbon, has become a geo-politic strategic point

in this part of the world, and despite the focus

on the private rental sector s a solution for relo-

cation, there is genuine interest in purchasing

top-end properties in historic and consolidated

areas of the city.

An exclusive one bed apartment built with the charater of a classic building and the confort and luxury of modern living. Located in Chiado. Price: €680,000

The apartment is located in one of the main avenues of Lisbon, near university, popular street shopping and leisure areas. Price: €622,000

Apartment located in a prime area. An excellent option. Privacy and location are two of your top list requirements. Price: €360,000

3 bedroom apartment in private condominium, offering wide spaces, double lounge, terrace and views towards the communal garden and pool. Easy access to high-way and beach area. Cascais. Price: €800,000


BUY-TO-LET

INVESTMENTS Lisbon well positioned to attract

buy-to-let investors

Lisbon has seen a marked shift in recent years

towards a rental market. As a result of the recent

economic crisis in the country and the resulting

new policies aiming for higher solvency and the

reduction of banks overall debt, the number of

households has declined. Higher interest rates,

lower LTV ratios and the need for professional

mobility are turning Portuguese buyers towards

the private rental sector.

Lisbon’s strategic plan was presented earlier this

year by Dr. Antonio Machado, president of the

city-hall, where a list of determinant factors for

long term sustainability, prominence and social

and economic development were presented to

the audience.

There were two major vectors highlighted in the

strategic plan: i) urban rehabilitation and ii)

entrepreneurship. The first one, which is already

in place with several projects accomplished and

others to start later this year, is related to the

recovery of riverfront areas by promoting leisure

and commercial areas on the banks of the river.

This plan also includes the rehabilitation of the

urban landscape, especially the historic areas

almost forgotten for the last two decades, and

which are Lisbon postcards for the tourism sec-

tor. Continues on the following page

One and three bed apartments in a traditional neighbe-rhood, walking distance to Lisbon castle , restaurants, public transportation and other services Pr: €240,000

A charming touristic house Integrated in Quinta da Marinha resort walking distance to the golf course, gym and hotel. 5 minutes from Cascais. Pr: €265,000

This private condominium isl ocated located in the hosto-ric centre, near restaurants, university and other ameni-ties. One and two bed apartments. Price from: €249,000

Two bed duplex apartment in prime area, near hospital s, university and embassies. Terrace with views towards St. Jorge castle. Low maintenance. €350,000


Lisbon offers many investment opportunities in

restored buildings in central points of the city.

The charming atmosphere of the capital city owes

much to the picturesque Pombaline architecture

that paints the city with bright colors and elegan-

ce. These older properties are now on the radar

of real estate investors who seek higher returns

from the rental market. Discover a city where

old buildings are converted into up-market resi-

dences in exclusive locations.

The second strategic vector is the facilitation and

creation of entrepreneurship. The project was

launched this year with a start-up incubator

(startuplisboa.com) and one of the participating

companies has already been chosen to represent

Portugal in the greater global entrepreneurship

competition in Barcelona. The aim is to create

vibrant new companies who will generate

employment and wealth for the economy.

As these types of strategic innovations are rolled

out in Lisbon, buy-to-let is becoming a real driver

in the market as demand for rental apartment’s

increase and selling prices adjust reflecting mar-

ket conditions. Lisbon offers excellent investment

opportunities in the low-end and top-end of the

market and in a variety of locations.

For more information about buy-to-let or other

property investment opportunities in Lisbon con-

tact us at [email protected] or directly to

(+351) 91 8621 869

Spain on the other hand have massively attracted over-

seas buyers on the last 20 years based on price, not out-

standing the fabulous coast and exotic culture, but it faces

an enormous challenge nowadays related to the extensive

urban landscape along the coast. Mass markets are mate-

rialized in a less planned territory and less differentiation.

Here is where Portugal wins against any other

destination. Its size makes Portugal bigger on

the European holiday market. Along the coast

You will find niche property markets with con-

trolled supply and adequate demand that fore-

seen good investment opportunities. The

increasing frustration of British buyers that

want to get out of the Spain and don’t find

buyers for their holiday homes almost at any

price has hit British news, and despite being a

negative feedback for residential tourism it

emphasizes the fact that small markets, such

as Portugal, represent better investment opportunities for

overseas investors than mass markets. Quality in Portugal

comes as a strategic option, but also as a differentiator

factor of a small market, considerably unexplored, that

offers security and uniqueness.

More reasons to smile

With British Pound increasing its value against the

Euro, properties are becoming more attractive this

summer. The evident weakness of the eurozone eco-

nomy materializes a less strong currency despite the

efforts of the European bank to mantain a strong

Euro. Should you expect a further reduction on the

euro? Its natural to think so, but there’s no prediction

on how much and how long it would take. There are

mechanisms that allow you to cover currency risks.

Ask our Winkworth financial advisors for more info.

Big markets vs. Small markets

Why big is not good and why you should look for

small markets

Property is a location based market, as value differs

from location to location even on comparable prod-

ucts. Simplistically we can

agree that Supply and De-

mand are the two forces

that define market prices,

although we all know fi-

nance is one major force in

this equation too, but put-

ting that aside, purchase

prices are given when sup-

ply meets demand.

So, we can also agree that

over-supply will force the

price down (see figure above).

Portugal has been recognized, for many years now,

as a Quality Market Destination, and the reason as

much to do with its market size than to a strategic

decision of product positioning towards the interna-

tional markets.


Winkworth since 1835

Winkworth originated in central London in 1835. Our original Head Office was located in Curzon Street, Mayfair, with a country office in

Brighton. Our main business involved selling residential property to an exclusive client list and letting houses in Mayfair to the landed gentry

for 'the season'.

Of course, things are very different today. Society has changed and so has Winkworth. Our network now has over 80 independently owned

and operated offices. Over 50 offices are located in prime central London and greater London, established country offices are located across

the UK and carefully controlled expansion into exclusive international markets has taken our business to France and Portugal.

As a name synonymous with prime residential real estate, Winkworth has become the obvious choice for both UK and international buyers

and sellers.

The Network

Every single Winkworth office is owned by an independent proprietor, whose market expertise is unlikely to be surpassed. Our proprietors

and their staff are encouraged to be active members of the local community too, which means they have a vested interest in ensuring every

client receives an exemplary service. All our offices work together. They share business and refer those clients that they can't help, perhaps

because they don't cover the area in question, to an office that can. As a client, you don't just benefit from the services of one Winkworth

office, you benefit from a whole network of offices, plus the specialist marketing services of the Franchisor Office in London.

Winkworth Lisboa | +351 918 621 869 | [email protected] www.winkworth-international.com

market insight summer 2012

Real Estate