The Proptech in Portugal is just unfolding, with scores of foreign buyers, the property prices. Demand for Real Estate services has strengthened and fuelled a demand for proptech players.
In Southwestern Europe, located on the Iberian Peninsula is the stunning city of Portugal. This developed country has a high-income economy and is known to have a high standard of living, compared to international standards. Interestingly, it is also known to be the 3rd most peaceful country in the world. The largest, as well as the capital city of Portugal, is Lisbon, a global city that attracts international interest. Most industries, businesses and financial institutions are concentrated in the Lisbon and Porto metropolitan areas. The ideal Portugal experience consists of a variety of different settings: Medieval castles, cobblestone villages, captivating cities and golden beaches. The history and food of here is sure to keep anyone intrigued.
The modern global economy of Portugal is a system that is focused on the high-tech sector, private investment, and exports. Real estate is not essentially a high contributing product to the GDP despite being a rich class asset. Portugal still claims the position of the world’s largest producer of cork. But business services have slowly been taking over traditional industries. Settling of these high tech industries in Portugal has definitely added to the growth of real estate market of here.
A study revealed that Lisbon and the Algarve are by far the most expensive areas in which to buy property in Portugal. The study also revealed that Portuguese real estate is undervalued and the price-to-rent ratio makes Portugal arguably the most attractive property market in continental Europe.
The ‘Golden Visa’ program, launched in 2012, has made Portugal even more lucrative for foreign investors and developers. As per 2019, Portugal remains to be the top country in Europe for affordable real estate. With the Golden Visa opportunity, real estate got a boost. This interest from foreign investors has helped boost property prices in Portugal. In 2018, renting an apartment in Lisbon was more expensive than it was a year ago. However, prices stabilized towards the start of 2019. Rental prices in the Portuguese capital rose by 1.8% in 2018 over the previous quarter and by 17% in counterpart terms. In 2019, Lisbon accounted for 35% of real estate transactions in Portugal.
Entrepreneurship ecosystem in Portugal
Post the last financial crisis, Portugal was one of the worst hit countries in Europe. But using their small size to advantage, Portugal bounced back hard and fast. Intelligently using entrepreneurship as its power tool, they set out to create their own future. Today the unemployment rate has fallen from 17 percent in 2012 to 6.7% in 2019. Combined with regulatory methods of the government, entrepreneurship has been able to considerably change Portugal.
There are multiple factors that contribute to the growth of startups here. Many of these are in old buildings with beautifully tiled walls in the cobblestoned streets of downtown Lisbon. Other than the facts that quality of life is high and there is an educated skilled working class available in Portugal. It also matters that living costs, as well as salaries here, are low. As the country is small, Portuguese startups launch with an international vision in mind, making them ever so scalable and global. The Municipality of Lisbon has been bending over backward to incentivise entrepreneurs to start their companies in the city. Any business certified by IAPMEI (Governmental Small and Medium Enterprise Agency) cam make a certified investment in an SME (or startup) less than 3 years old and claim a deduction on the individual income tax of 20% of the investment made in the Startup. This has triggered an entrepreneurship rush that is a very interesting development with regards to proptech in Portugal or how PropTech can grow.
Some of the startups here are:
Infraspeak develops efficient, flexible and user-friendly software to excel at facility and asset management. They use advanced web, mobile and IoT technologies to radically increase control and productivity of our customers, reducing bureaucracy, risks and costs. They landed a €1.6 million funding round from first minute capital, Innovation Nest, Construtech Ventures, 500 Startups, and Caixa Capital. The startup intends to use the funding for international expansion.
CORKBRICK works on the real-size modular system – inspired by Lego, invented for life. They reinvent the way we deal with nature and the space we live in. CORKBRICK is a natural solution that can be used again and again while providing us with benefits from nature such as better indoor climate and sound isolation. They let the consumers explore the possibilities of configurations towards a practical use that can easily be transformed into another.
This website provides promoting and publicizing, specialized on Holiday rentals accommodation, Long-term rents and Sale of real estate. Their aim is to provide the most complete, safe and user-friendly tools and options, allowing partners/clients to succeed in promoting their estates. They help in direct contact between both parts despite the distance and barriers that might exist, approaching supply and demand when it comes to the real estate market.
Way forward for proptech in Portugal
There are some very interesting startups working in proptech in Portugal. While there is a host of real estate classified listings portals, the interesting companies here are introducing high-tech tools to Portugal and the world. 3D modeling, virtual reality, augmented reality and cloud computing has made their way here.