New construction takes 80% of the pipeline

According to the most recent data verified by Confidencial Imobiliário, between January 2017 and June 2018, 49,400 housing units were licensed in Mainland Portugal, in the scope of Real Estate Pipeline. Of the volume units that came into the portfolio, about 80% (corresponding to 39.3 thousand units) are of new construction, the remaining 20% (10.1 thousand units) resulting from refurbishing projects. These housing units are integrated in 22.2 thousand projects, of which 4,2 thousand are refurbishment (19%) and 18 thousand are new construction (81%).

In terms of geographic distribution, while in the rehabilitation the Metropolitan Areas of Lisbon and Porto take, respectively, 36% and 25% of the housing units, leading the national pipeline of this type of development, in the case of new build is the North region that leads the chart of housing units at 27%. The Metropolitan Area of Lisbon occupies 25% of the portfolio of new construction housing units in Portugal, registered in the period under analysis, while the Porto Metropolitan Area adds 13%.

Ricardo Guimarães, director of Confidencial Imobiliário, comments: "The pressure of demand and its effect on prices is generating a boost in the real estate development market, whose expectations have allowed the introduction of an increasing number of new housing projects, in a scenario where the supply shortage continues to be one of the biggest constraints to market growth. The new construction market is the engine of the observed growth, currently registering a substantially higher dynamic than that of rehabilitation works, in which investment has registered a slowdown in growth. "

According to reports of the refurbishment real estate pipeline, T1 (one bedroom) or less is what continues to be the most introduced in the market, taking a 39% tranche of the units from the last 18 months at national level. In the case of new construction, it is the larger typologies that stand out the most, with 45% of the housing units in the national portfolio having 3 bedrooms.