Diapositivo 1

HISTORY: HIGHLIGHTS
1143
1910
Monarchy
1933
Republic
1974
Estado Novo
Authoritarian
1986
Revolution
Democracy
Join the UE
 Portugal has been an independent state since 1143
 Establish its continental frontiers in 1297 – it is one of the oldest nations of
Europe
LOCATION: PORTUGAL IN THE WORLD
World
Europe
Russia
Portugal
Portugal in the World: Language
Source: http://www.sjsu.edu/foreignlanguages/pics/Map_LusophoneWorld.png
 It is one of the world's major languages, ranked 6th according to the
number of native speakers (between 191 and 230 million)
GENERAL INFORMATION
Official Name: Portuguese Republic
Type of Government: Parlamentary Democracy
President: Aníbal Cavaco Silva
Prime Minister: José Sócrates
Official Language: Portuguese
Total Area: 92,090 km2
Capital: Lisbon
District Capitals: Aveiro, Beja, Braga, Bragança, Castelo
Branco, Coimbra, Évora, Faro, Funchal, Guarda, Leiria, Ponta
Delgada, Portalegre, Porto, Santarém, Setúbal, Viana do
Castelo, Vila Real e Viseu.
Population: 10,627,250 (2008 E)
Population Density: 115 inhabitants / Km2
Religion: 97% Roman Catholic
Currency: EURO (EUR)
UE Membership: Since 1986
UE President : Durão Barroso
Source: INE
Districts of Portugal: 20
PORTUGAL AT A GLANCE: NORTH
Guimarães Castle: Birth of Portugal
Douro Vinhateiro: Classified by the Unesco as world
heritage
Porto
Traditional Boats: Rabelo
PORTUGAL AT GLANCE: LISBON
Lisbon
Casino do Estoril
Castelo de Sintra
Estoril Golf
PORTUGAL AT GLANCE: SOUTH AND ISLANDS
Algarve
Alentejo: Cork
Algarve, Sheraton Pine Cliffs
Azores
CLIMATE
Average Weather
Local
Porto (North)
Lisbon
Algarve (South)
Jan./Mar.
April/June
July/September
October/December
Air
Sea
Air
Sea
Air
Sea
Air
Sea
0
C
10,3
12,9
15,4
14,4
19,6
15,9
12,8
15
0
F
50,5
55,2
59,7
57,9
67,3
60,6
55
59
0
C
17,1
14,9
21,8
17,5
26,3
19,5
17,2
16,1
0
F
62,8
58,8
71,2
63,5
79,3
67,1
53
60
0
C
17,0
15,9
22,4
19,4
27,3
22,6
17,7
17
0
F
62,6
60,6
72,3
66,9
81,1
72,7
63,9
62,6
Source: www.visit.portugal
APEMIP IN SCOPE
 It is a association of national scope, set up 41 years ago
 APEMIP’s main concern is to protect the interests of the real
estate agents and brokers
The association has witnessed a considerable evolution in the
number of associates, counting currently with 95% of the real estate
professionals, out of a total of 3.021 existing accredited agents in
Portugal
APEMIP, with head office is Lisbon, is now represented in its
Regional Boards, to be closer and better support its associates of
the Northern, Central, Southern, Madeira and Azores regions
 From an International perspective:
- APEMIP represents and it is a Principal Member of the
FIABCI – International Real Estate Federation.
- APEMIP has the Presidency of CEI – European
Confederation of Real Estate Agents.
- ICREA (International Consortium of Real Estate
Association) member
APEMIP IN SCOPE: STRATEGIC PROJECTS

: Real Estate reference Portal in Portugal (www.casayes.pt);

: Corporate TV system developed exclusively to the associates
(www.apemip.tv);

: Real Estate Academy – providing continuous learning opportunities;

: offering the possibility of having access to multiple solutions of energy
certification for buildings and equipments related with
renewable energy sources;

: Provide health insures benefits;

:
With a government partnership, providing access to a range of services
linked to real estate market, improving and reducing the bureaucracy
of buying a home.
APEMIP IN SCOPE
Real Estate Agents - Evolution
4.000
3.500
3.517
3.534
3.499
3.785
3.460
3.408
3.322
Numbers
3.000
3.027
3.017
3.021
Mar.09
Jun.09
Jul.09
2.500
2.000
1.500
1.000
500
0
Jun.07
Source: InCI
Set.07
Dec.07
Mar.08
Jun.08
Set.08
Dec.08
MACROECONOMICS: CURRENT SITUATION AND FORECASTS
12,0%
10,0%
8,0%
6,0%
4,0%
2,0%
0,0%
-2,0%
-4,0%
-6,0%
2001
2002
2003
2004
2005
2006
2007
2008 2009 E 2010 E
Gross Domestic Product 2,0%
Private Consumption
1,2%
0,8%
-0,8%
1,5%
0,9%
1,4%
1,8%
0,0%
-3,5%
-0,6%
1,0%
-0,1%
2,5%
1,9%
1,9%
1,6%
1,7%
-1,8%
-0,6%
Inflation
4,4%
3,7%
3,3%
2,5%
2,1%
3,0%
2,4%
2,7%
-0,5%
1,3%
Unemployment
4,0%
5,0%
6,3%
6,7%
7,6%
7,7%
8,0%
7,6%
9,6%
11,2%
Source: Bank of Portugal, GEE, OCDE
DEMOGRAPHICS: CURRENT SITUATION AND TRENDS
Inhabitants versus Foreigners (2008 E)
12.000.000
10.627.250
Numbers
10.000.000
8.000.000
6.000.000
4.000.000
2.000.000
440.277
0
Population
Foreigners
Source: INE, SEF
 Ageing
of population
 Increase of life expectancy
 Decrease or stabilization of birth rates and fertility rates
 Reduction of average dimension of families
 Increase of families with a single person
Positive balance of immigration
FOREIGN DIRECT INVESTMENT
Foreign Direct Investment (FDI) - Evolution
35.000
32.224
30.000
27.111
27.677
2004
2005
32.820
32.634
31.985
2006
2007
2008
€ Million
25.000
20.000
15.000
10.000
5.000
0
2003
Source: Bank of Portugal/AICEP
FOREIGN DIRECT INVESTMENT
Foreign Direct Investment in Portugal (Gross) – By
Economic Activity 2008
1,4%
0,8%
3,6%
4,4%
23,5%
Foreign Direct Investment in Portugal (Gross) – By
Economic Region of Origin 2008
5,4%
4,2%
7,3%
2,1% 1,9%
1,9%
20,0%
6,0%
32,1%
15,6%
30,0%
Manufacturing
Wholesale and retail trade, repairs, hotels and restaurants
Real Estate, Rentals and business activities
Financial intermediation
Transports, Storage and communications
Production and Distribution of electricity, gas and water
Construction
Other activities
Source: Bank of Portugal/AICEP
13,6%
13,4%
Germany
United Kingdom
Luxembourg
Belgium
12,8%
Spain
Netherlands
Sweden
Others
France
Switzerland
Canada
REAL ESTATE SECTOR : RESIDENTIAL CURRENT SITUATION
Number of Dwellings versus Buildings
(2008)
6.000.000
Algarve
6%
Number
5.000.000
Madeira
2%
Azores
2%
Alentejo
8%
4.000.000
3.000.000
Dwellings by Region (2008)
Lisbon
25%
5.707.961
2.000.000
3.436.409
1.000.000
0
Dwellings
Source: INE
North
32%
Buildings
Centre
25%
RESIDENTIAL
License Dwellings - New Constrution (2008)
Source: INE
RESIDENTIAL
Mortgages Evolution: Volume
Source: Bank of Portugal and DGT
RESIDENTIAL DEMAND
Buying versus Letting – Jully 2009
Demand by type – Jully 2009
T3
26,4%
51,8%
T4
10,7%
≥ T5
6,9%
T2
32,7%
47,0%
Buying
1,2%
Letting
Other
Source: APEMIP/Casa Yes
T1
19,4%
ST e
T0
3,9%
RESIDENTIAL DEMAND
Demand: Buying Prices by Type
Demand: Letting Prices by Type
Source: APEMIP/Casa Yes
RESIDENTIAL SUPPLY
Asking Prices: New Apartments (July 2009)
Asking Prices: New DetachedVillas (July 2009)
Source: APEMIP/Casa Yes
Average Values Apartments:
Average Values Detached Villas:
- Porto (North): €1700/sq m
- Lisbon: € 2.225/sq m
- Faro (South): € 2.245/sq m
- Porto (North): €1.260/sq m
- Lisbon: € 1.790/sq m
- Faro (South): € 2.550/sq m
RESIDENTIAL TRENDS
 Portuguese Residential Market was one of the first sectors to feel the effects of
the crisis
 Due to economic situation strong increase of demand on primary households in not
forecasted in the short/medium term.
 Decrease of construction levels
 Low interest rates vs restrictive bank policies
 Increase of letting market
 Increased importance of differentiated products and market niches. Adjustment to
demand has proved successful even during adverse economic cycle
 Renewal / Re-qualification of apartments / houses mainly in major cities centres
 Good investment opportunities in some areas
 Growing Customization of houses – From mass production to mass customization in
the long term. Growing importance of demand side
REAL ESTATE SECTOR : OFFICE MARKET TRENDS
 More relevant Markets: Lisbon and Oporto
 Prime CBD (Central Business District) Lisbon: Avenida da
Liberdade
 Prime CBD Oporto: Avenida da Boavista
 Demand: Focus on cost and area reduction;
 Decrease on take-up levels
 Supply: Decrease on speculative supply;
Increase of incentives offer by the landlord
 Rents: Pressure on Prime Rents
REAL ESTATE SECTOR : RETAIL MARKET TRENDS
 In 2008, Portugal accounts to a total GLA (Gross Lettable Area) a
of about 3.2 million sqm mainly concentrated in Greater Lisbon and
Oporto.
 Supply Side: there’s a significant development pipeline for both
shopping centres and retail parks.
 Demand side: retailers more cautious in terms of future expansion.
 Average rent values for Shopping Centres (SC), according to APCC
(Portuguese Council of Shopping Centres) the average rent
values of Prime Shopping Centres vary between €40€55/sqm/month
 Rental values will be under pressure in all sectors of the retail
market during 2009.
 Prime SC Rents By Area
REAL ESTATE SECTOR : HOSPITALITY
According to World Tourism Organization (WTO) Portugal ranks in terms of recive
tourists in the top 10 european countries and among the top 25 on a world scale.
 Portugal is a diversify country and each region has a particular feature.
Main Distinve Factors By Region
Source: ITP
REAL ESTATE SECTOR : HOSPITALITY
 Contration in the national tourism indicadors
 In 2008 arrived in the market 30 new hotels.
Touristic Activity – Portugal 2009
Month Value
Global Results
Cumulative Value
June 09
Var. (%)
09/08
Jan-Jun09
Var. (%)
09/08
Guests (Thousand)
1.209
-0,3%
5.871
-6,2%
Nights (Thousand)
3.640
-1,6%
16.067
-8,8%
Residents in Portugal
1.311
18,4%
5.557
150,0%
Foreigns
2.328
-10,2%
10.510
-13,4%
3
-0,1%
3
-10,0%
170
-8,0%
761
-13,2%
Average Stay (nights)
Income (Thousand)
Source: INE
REAL ESTATE SECTOR : HOSPITALITY TRENDS
 New Poles of tourism are arisen in Portugal
 Arisen as a strategic product: GOLF
 According to the European Golf Association in 2008 there were approximately 78 golf
courses mainly concentrated in Algarve and Lisbon.
Main Distinve Factors By Region
Source: ITP
LEGAL FEATURES
 Entrance requirements: Portugal is a signatory of the 1995 Schengen Agreement.
Passport valid up to 6 months (depending on nationality) required by all except: EU nationals
and nationals of Iceland, Lichtenstein, Malta, Norway and Switzerland holding valid national ID
cards.
Nationals of the EU and certain other European Countries can live and work in Portugal
without a visa or work permit. Non-EU nationals require a visa to enter Portugal if they plan to
stay longer than 90 days or intend to work or study here.Visas should be applied for well in
advance, from a Portuguese consulate or embassy.
 Setting up a business:
Excluding the acquisition of a Portuguese company, the most common ways of investing in
Portugal are:
- Set up a company
- Set up a branch
The most common type of companies in Portugal are:
- SA (Shareholders company)
- LDA ( Limited liability Company)
- Others (less used): Joint ventures and partnerships
Notice that with “Empresa na Hora” (On the Spot Firm) initiative it is possible to create a
company in just one office in a single day.
LEGAL FEATURES
Tax System:
VAT (Value added Tax) – three types of value Added tax (VAT) are imposed: 20% (Standard
rate) and 12% (catering, petrol and some foodstuffs) and 5% ( food
products, water, publications, electricity, transport, hotel business and leisure activities).
Portugal’s tax rates for individuals (IRS) are progressive. Currently tax rate is up to 42%.
The Standard Corporate Tax (IRC) is 25% with the addition of a variable municipal tax (01.5%). Companies in the free trade zone of Azores and Madeira are eligible for a reduced tax
up to 3%.
Municipal tax on Real Estate Transfer (IMT): current taxes up to 8%.
Municipal tax on real property: tax varies between 0,2% to 2%
Stamp Duty: values between 0,04% to 25%.
DOING BUSINESS IN PORTUGAL
Doing Business in Portugal 2009
Ease of Doing Business
Starting a Business
Dealing with Construction Permits
Employing Workers
Registering Property
Getting Credit
Rank (181
Economies)
48
34
128
164
79
109
Protecting Investors
Paying Taxes
Trading Across Borders
38
Enforcing Contracts
Closing a Business
34
Source: Doing Business – Country Profile 2009
73
33
21
Looking forward to see you soon
in Portugal