Construction, a sector that shows signs of being resilient to Covid-19
Banco de Portugal, for example, highlighted the “remarkable resilience” of the sector, which managed to remain “insulated from the strong negative impacts of the pandemic crisis”.
Portugal lost with the pandemic, between the first and third quarter of the year, 66,000 jobs (in net terms). The construction sector seems to have escaped this trend, however, showing signs of resilience: 5,300 jobs were created during that period. The data from the National Statistics Institute (INE), released in November, were in line with those released a month earlier by Banco de Portugal (BdP), which considered that the construction sector is showing a “remarkable resilience”, managing to maintain itself “Insulated from the strong negative impacts of the pandemic crisis”.
What was said about the sector
On this subject, David Marques, CEO and founding partner of Detailsmind, a company dedicated to the construction and rehabilitation market in Portugal, said that the construction sector, and almost in a kind of counter-cycle, has stood out throughout this period for the its positive performance and the way it has managed to “escape” the crisis. “The market shows signs of wanting to recover its previous dynamics”, maintaining “the intentions of executing projects in various areas”, he said, in an interview with idealista / news.
For Manuel Reis Campos, president of the president of the Portuguese Confederation of Construction and Real Estate (CPCI), the projects launched under the National Investment Plan (PNI) 2030, worth almost 43 billion euros, must have taking into account the capacity and qualification of the national business fabric. The official defended that “companies have to know what they can count on and have equal circumstances to compete with foreign competitors”.
Manuel Reis Campos said, however, that it is important to have your feet firmly on the ground. This is due to the economic uncertainty that a second wave of the pandemic can bring. Before, in August, he said that it is “in public and private investment that the key lies” in the collective future of the construction sector.
Licensing and construction costs
In the third quarter of 2020, that is, summer months and in the middle of the pandemic, the number of licensed and completed buildings in Portugal increased by 2.8% and 1.5%, respectively, in year-on-year terms. Statistics Portugal reveals that, between July and September, 5,900 buildings were licensed and 3,700 completed.
With regard to housing construction costs, they increased by 2.2% in October 2020 compared to the same month last year, according to ONI. A year-on-year rise similar to that recorded in September.
Enterprises are born in pandemic
There were several developments – mainly residential – that were news throughout the year, either because they were going to be launched and / or commercialized, or because they were already being built or because they were being designed. This in a pandemic scenario of the new coronavirus, which shows that the construction sector has not stopped, as we wrote at the end of June, when we wrote that the real estate and construction sector closed May almost fully operational, with 97% of companies of these activities to work. An idea, by the way, also left before, in April, and later, in September.
Rehabilitation in times of crisis
Despite all the real estate projects in progress, the supply of new housing in Portugal is growing at a (very) slow pace. The country is managing to build and finish an average of less than 1.5 new homes per thousand inhabitants, currently the European market with the lowest “ceiling”, at stake is a study by the Ifo – German economic research institute. Urban rehabilitation, in addition to new construction, started to be talked about again in 2020, with many properties that gained “a second life”, such as the former Faculdade Moderna, in Lisbon, and the former Slaughterhouse in Porto.
It is important to say, in this regard, that the Financial Instrument for Urban Rehabilitation and Revitalization (IFRRU) 2020 has managed to increase its execution in recent months, marked by the Covid-19 pandemic, having reached 248 signed contracts, in an investment of 704 million euros. euros in integral rehabilitation of buildings and improvement of their energy performance, announced in September, the Ministry of Infrastructure and Housing.
Making houses more efficient
In order to help make homes more efficient, we have prepared a special dossier in which we explain, for example, how it is possible to have healthier, more comfortable, economical and environmentally friendly homes and what are the financial support provided by the Government to families.