Undertaken by the real estate data bank Confidencial Imobiliário (CI), the survey notes that “the [slow] licensing process is considered the most worrying issue as an inhibiting factor in regard to property development, reaching a pressure index of 95%”. This figure is closely followed by building costs, at 84%.

The survey relates to the first quarter of 2020 and notes the increased “sentiment of uncertainty among developers about the future evolution of prices and residential demand”.

Hugo Santos Ferreira, Executive Vice-President of the Portuguese Association of Real Estate Developers and Investors (APPII), which supported CI in conducting the survey, said the results translate developers’ concerns with the difficulty of obtaining licences in a timely manner.

“Although investors have a positive perspective of 2020, they show concern with the growing difficulties in licensing and legislative context, which have jeopardised the goal of increasing market offering, in particular residential, and therefore exacerbating the existing pressure that resulted from the drop in demand due to recent legislative changes,” he said.

These concerns, however, do not seem to be putting off developers. According to the survey, 79% of respondents confirmed their intention of launching new projects in Portugal, and 55% indicated they were actively looking for land for new development.

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