Real estate - now more than ever? / But is this really true?

Real estate - now more than ever?

Especially now, when the stock and derivatives markets are collapsing, many express their confirmation that there is nothing better than investing in real estate. Such investment becomes, as a rule, the best form of capital investment for the retirement plan.

But is this really true?

Or what scenarios should buyers and investors be prepared for now?

Right now, when stock prices fall again, Real Estate remains firm, because there is a phrase engraved on our minds: "Real Estate is the best form of retirement provision". That is at least what about three quarters of Europeans and 90% of adults under 30 say.

It comes as no surprise to anyone that in times of high fluctuations in prices on the stock exchanges in recent years, house prices have only been rising. And they have risen to such an extent that many young people are already afraid that they will not be able to pay this form of pension. Today they pay 60% more for their own house than in 2009. Isn´t this proof that buying a house is the most profitable investment of your life?

The property market in Portugal today is more solid than it was in 2008/2009, with credit restrictions by banks, demand has been and is at a stable level. There are not proportionally as many indebted families who have to choose not to meet their mortgage obligations. Banking and politics are committed to creating vehicles that make these obligations moratoria for times of crisis, and to return to normal after the crisis.

In the financial crisis of 2008, it was the overheated US housing prices that caused the global crisis with their collapse. By the end of 2019, some connoisseurs of the Portuguese real estate market were announcing that the real estate market had gradually reached the turning point.

It is also known that when the real estate boom is over, a recession follows. That recession will certainly come, but this time not created by the end of the real estate boom. This recession that will follow is because of the circumstances caused by the coronavirus, and for this phenomenon there are no parameters in human history and in the economy that can indicate us where this situation will take us.

We understand that people still need housing, real estate developers and investors make a living from buying and selling it. The banks need to grant housing loans and invest capital in a safe and firm market, which has already been mentioned as real estate. The generation of heirs needs to apply their inheritances in the long term and in a secure way for the next generations, and then choose Real Estate. International capital holders who, with low banking interest rates and insecurity in the stock market, are looking for better options to invest their money, have it in large quantities to invest all over the world.

There is much to do during and after the crisis, Casaibéria is prepared and will not give up, in this economic context, in the fight for the good of its customers.