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Covid-19 and the real estate market in Portugal

April 02, 2020
3 min

The Portuguese real estate market, a darling of foreign investors in recent years, was taken by surprise, like the rest of the world, by the Covid-19 pandemic. 2020 was proving to be another excellent year in this rising price that did not seem to end.

From one hour to the next, sales dropped to almost zero, closed deals that were postponed or canceled .... the reasons were diverse, from the impossibility of buyers entering the country, to the normal fears of the most frightened in front of quickly established instability.

To top it off, the number of disqualified “players” in the real estate market, profound Facebook scholars and Whatsapp currents, who were the first to solidify the panic is not new to anyone, disseminating, without any technical basis, highly negative and biased news about the market: Prices will plummet !!!! Based on what? Graphical analysis? Projections? No, nothing like that ... when questioned they say that the market will go down because they think so, they think banks will break down, they think the economy will break down ... they think ... they think ... postgraduates in “ guessing ”.

But after all, will prices really fall? It is too early to answer if we still do not know how long this pandemic will last, whether it will affect the summer season that substantially impacts the values of real estate for local accommodation. But so far nothing indicates an expressive decline.

However, if we change the question to: Are there going to be big losses in the real estate market? Then the answer changes ... it's easy .... Go !!! And who will lose? Who should lose, who always loses ... the less qualified and the poorly oriented. The same ones that will lose on the Stock Exchanges and any other type of investment.

Whoever loses their position at the wrong time and consequently for the wrong amount, they will lose, I call this the price of learning.

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