The Explosive Growth of the Property Market in Portugal: Main Drivers and Trends
The real estate sector is evolving towards more consistent models, oriented to the generation of long-term value. If for decades the dominant paradigm was Build to Sell - build to sell, today more sustainable alternatives emerge, among which Build to Rent (BtR) stands out: building for the exclusive purpose of renting.
In Portugal, this model has established itself as one of the most solid and effective forms of investment in income assets, driven by strong housing demand and the valuation of financial stability as a decision-making criterion.
While Build to Rent stands out as an expanding strategy, it represents just one of many ways to invest in income assets in the real estate sector. Stable profitability and long-term valuation can also be achieved through other assets, such as conventional housing for rent, offices with solid contracts, local commercial spaces or logistics platforms. In these cases, the asset may not have been created specifically for leasing, but is adapted or repositioned for that purpose.
It is precisely in this capacity to structure and combine different types of assets with a focus on income that an SGOIC adds value, through integrated, strategic management adapted to the risk profile of each investor.
What makes Build to Rent an increasingly sought after solution?
The concept is simple: develop properties specifically for rent, with long-term contracts, professional management and a focus on predictable income. Unlike the immediate sale model, BtR offers a long-term logic, ideal for institutional investors such as funds or asset management companies.
The increasing difficulty of accessing housing, especially in large cities, has driven a stable demand for rental solutions. The Build to Rent model responds to this trend by promoting assets developed from scratch to be leased, ensuring quality, efficiency and professional management. Although the residential segment is the most representative, BtR can also be applied to other typologies, such as student residences, coliving buildings, offices and even logistics platforms or spaces for commerce and services.
In common, all of these projects share a logic of continuous use, performance stability and focus on the user experience, responding to a profile that values access over ownership.
Additionally, the macroeconomic context, with more volatile interest rates and a less predictable capital market, led many investors to seek real assets with regular returns. BtR fits this profile perfectly: an investment with stable returns, protection against inflation and great valuation potential.
Residential, retail, offices, logistics: a structured income portfolio
Build to Rent is part of a broader logic: the creation of portfolios of income-oriented real estate assets. Within this logic, there are different typologies with their own and complementary characteristics:
- Residencial (BtR or classic lease): excellent liquidity and occupancy, especially in metropolitan areas with a shortage of qualified supply.
- offices: long-term contracts with solid companies, valued for location, accessibility and certifications such as LEED or WELL.
- Local retail: stores with stable tenants (such as supermarkets, pharmacies, or services), with constant flow and low turnover.
- Logistics: an expanding segment, driven by e-commerce and the need for distribution centers in peri-urban areas.
Each of these assets responds to different risk and return profiles, and all can be structured and managed within an ICO (Collective Investment Organization), either in the form of a fund (FII) or a company (SIC), always under the management of a duly regulated SGOIC.
How does a SGOIC enhance this type of investment?
Investing in income assets requires structure, knowledge, rigorous analysis, and execution capacity. This is where the role of a SGOIC, responsible for structuring investment vehicles, capturing assets with high potential, managing all dimensions of the project (financial, technical, legal, operational) and ensure compliance with all legal and regulatory requirements. In addition, it ensures that investments follow environmental, social and governance (ESG) sustainability criteria, which are increasingly valued by investors.
With a professional approach, SGOIC allows investors to:
- Access opportunities that would not be available individually;
- Benefit from a specialized management and continuous;
- Reduce risks through diversification and careful technical evaluation;
- Maximize return risk-adjusted with security and transparency.
The real estate market today offers multiple paths for those seeking stable income, asset valuation and strategic strength. Build to Rent, combined with other income assets, represents a modern and effective response to the challenges of a changing market.
With the technical and institutional support of an SGOIC, this type of investment becomes a structured tool, adjusted to different profiles and objectives, and prepared to create long-term value.
