Developed by ILM Advisory, the 10-10-10 serves as a quarterly marketing barometer with the objective of evaluating the level of confidence in the domestic residential tourism industry by monitoring the performance and tendencies in the sector.
The 10-10-10 encompasses a series of initiatives that ILM Advisory is developing as part of its Portugal Residential Tourism Market Intelligence report, which aims to supply market information by collating all the latest data and relating it to the residential tourism industry.
In order to carry out this survey, ten questions were put to the following 10 promoters/investors operating in Portugal, as well as 8 market-leading estate agents;
10 Promoters:
Norte Golfe Promoções Turísticas e Imobiliárias, S.A. - Porto
Bom Sucesso - Óbidos Empreendimentos Turísticos, S.A. - Óbidos
ORIZON CAMPOREAL S.A. - Óbidos
MSF - TUR.IM, SGPS, S.A. - Lisbon
Newlyn Portugal - Algarve
Pestana Imobiliária - Algarve
Vale do Lobo, Resort Turístico de Luxo, S. A. - Algarve
Grupo Oceânico – West and Algarve
Aquapura – Porto and the north
Grupo Duarte - Algarve
8 Real estate agents:
Abacus Savills – Lisbon
Atlantic Estates - Algarve, Lisbon and Costa de Prata
Garvetur - Sociedade de Mediação Imobiliária S.A. – Algarve
IRG International Reality Group – West (Oeste), Lisbon, Algarve, Madeira
Sadlers Mediação Imobiliária - Knight Frank – Algarve
Winkworth – Algarve and West (Oeste)
Consultan – Alentejo Litoral
Engel and Volkers – West (Oeste)
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10 10 10 Portugal Residential Tourism Market Confidence Analysis 2nd Quarter Final English
1. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS
Q U A R T E R L Y M O N I T O R
PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
2nd Quarter
Q
10 10 10
QUESTIONS DEVELOPERS AGENTS
2009
Q U A R T E R L Y M O N I T O R
PORTUGAL RESIDENTIAL TOURISM MARKET CONFIDENCE ANALYSIS
2nd Quarter of 2009 vs 1st Quarter of 2009
associates
ASSOCIATES 1
2. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS CONTENTS
Q U A R T E R L Y M O N I T O R
Introduction 3
1 – Market confidence in the residential tourism market 4
2 – Market interest in the regions of Porto, West (Oeste), Lisbon and the Algarve 5
3 – Decision‐making factors that influenced buyers in the 1st quarter of 2009 6
4 – Markets that represented a threat to Portugal in the 1st quarter of 2009 7
5 – Sales ‐ level of business activity 8
5.1 – Sales – volume by property type and price per square‐metre
5 1 Sales volume by property type and price per square metre 9
5.2 ‐ Sales – market interest in the 1st quarter of 2009, by country 13
5.3 – Sales – market confidence for the 3rd quarter of 2009 14
6. – Holiday rentals – level of business activity 15
6.1 – Holiday rentals ‐ volume by property type 16
6.2 – Holiday rentals – market interest in the 1st quarter of 2009, by country 19
6.3 – Holiday rentals – market confidence for the 3rd quarter of 2009 20
7 – Marketing measures that are being considered for implementation 21
8 – ILM Advisory ‐
8 ILM Advisory final conclusions 23
ASSOCIATES
3. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS INTRODUCTION
Q U A R T E R L Y M O N I T O R
Developed by ILM Advisory, the 10‐10‐10 serves as a quarterly marketing barometer with the objective of evaluating the level of confidence in
the domestic residential tourism industry by monitoring the performance and tendencies in the sector.
y y g p
The 10‐10‐10 encompasses a series of initiatives that ILM Advisory is developing as part of its Portugal Residential Tourism Market Intelligence
report, which aims to supply market information by collating all the latest data and relating it to the residential tourism industry.
In order to carry out this survey, ten questions were put to the following 10 promoters/investors operating in Portugal, as well as 8 market‐
leading estate agents;
10 Promoters: 8 Real estate agents:
• Norte Golfe Promoções Turísticas e Imobiliárias, S.A. ‐ Porto • Abacus Savills – Lisbon
Bom Sucesso ‐ ÓÓbidos Empreendimentos Turísticos, S.A. ‐ Ó Óbidos • Atlantic Estates ‐ Algarve, Lisbon and Costa de Prata
ORIZON CAMPOREAL S.A. ‐ Óbidos • Garvetur ‐ Sociedade de Mediação Imobiliária S.A. –
MSF ‐ TUR.IM, SGPS, S.A. ‐ Lisbon Algarve
Newlyn Portugal ‐ Algarve • IRG International Reality Group – West (Oeste), Lisbon,
Pestana Imobiliária ‐ Algarve Algarve, Madeira
g
Vale do Lobo, Resort T í ti d L
V l d L b R t Turístico de Luxo, S A ‐ Al
S. A. Algarve • Sadlers Mediação Imobiliária ‐ Knight Frank – Algarve
Grupo Oceânico – West and Algarve • Winkworth – Algarve and West (Oeste)
Aquapura – Porto and the north • Consultan – Alentejo Litoral
Grupo Duarte ‐ Algarve • Engel and Volkers – West (Oeste)
ASSOCIATES
3
4. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS 1 – MARKET CONFIDENCE IN THE RESIDENTIAL TOURISM MARKET
Q U A R T E R L Y M O N I T O R
2nd quarter of 2009 compared with the 1st quarter of 2009
Comparing the 2nd quarter of 2009
h d f
CONFIDENCE with the previous quarter, we found
that 39% of those surveyed reported
less confidence in the market, 50% felt
the same level of confidence and 11%
were more optimistic.
50%
AVERAGE The graph shows that from the
perspective of the real estate agents,
market confidence is marginally up
compared with that of the promoters.
Individual comments:
Promoters
“Hesitating but becoming more stable.”
“The same, despite the expectations of growing interest among buyers.”
“Continues to be difficult due to the absence of bank loans.”
Estate agents
“The market is still showing a distinct lack of confidence, which will eventually be overcome, slowly but surely.”
“Better than the first quarter, with more business being done.”
“The Portuguese market will continue to stabilise.”
“Th P k ill i bili ”
“If the properties are well located and reasonably priced, there's good interest. In the case of the properties
being over‐priced, there's little interest.”
ASSOCIATES
4
5. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS
2 – MARKET INTEREST IN THE WEST (OESTE), LISBON,
ALGARVE AND PORTO REGIONS
Q U A R T E R L Y M O N I T O R
Performance of the 1st Quarter 2009 and expectations for the 2nd Quarter 2009
SLIGHTLY STRONG INTEREST WITH TENDENCY TO MAINTAIN
PORTO
PERFORMANCE OR A SLIGHT INCREASE.
SLIGHTLY WEAKER INTEREST WITH TENDENCY TO MAINTAIN
PERFORMANCE OR A SLIGHT INCREASE.
LISBOA
SLIGHTLY STRONG INTEREST WITH TENDENCY TO MAINTAIN
PERFORMANCE OR A SLIGHT INCREASE
INCREASE.
WEAK INTEREST WITH TENDENCY TO INCREASE
INCREASE.
ASSOCIATES
5
6. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS
3 – DECISION‐MAKING FACTORS THAT INFLUENCED BUYERS
IN THE 1ST QUARTER OF 2009
Q 9
Q U A R T E R L Y M O N I T O R
Promoters and Estate
Promoters Estate agents
agents
Factors Average Ranking Average Ranking Average Ranking
RANKING
Property price 8 2 6 2 7,1 2 1. MARKET CONFIDENCE
Market confidence 9 1 7 1 8 1 2. PROPERTY PRICE
Currency fluctuations 5 4 6 2 5,8 3 3. CURRENCY FLUCTUATIONS
Real estate market prices 3. SAFETY
5 4 6 2 5,2 6
y g
in the country of origin 4. CLIMATE
4 CLIMATE
Variety of residential 5. VARIETY OF PROPERTIES AVAILABLE
5 4 6 2 5,3 5
properties in offer
6. REAL ESTATE MARKET PRICES IN THE
Ease of access to and COUNTRY OF ORIGIN
from the nearest 5 4 5 3 5.2 6
international airport
l 6.
6 PROXIMITY TO AIRPORT
Ease of access to the 7. EASE OF ACCESS
5 4 5 3 5 7
property 8. OTHERS
Climate 6 3 5 3 5,5 4
Safety 5 4 7 1 5,8 3
Other(s) 4 5 1 4 2,6 8
Other factors mentioned:
‐ Services and infra‐structure available for residents
‐ Location of property ‐distance from beach, golf course, etc.
ASSOCIATES ‐ Quality
6
7. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS
4 – MARKETS THAT REPRESENTED A THREAT TO
PORTUGAL IN THE 1st QUARTER OF 2009
Q 9
Q U A R T E R L Y M O N I T O R
Tradicional Markets Total Average Ranking
Spain 79 4,9 2
RANKING
France 60 4 7
Italy 65 4,3 5 1. TURKEY
2. SPAIN
Emerging Markets Total Average Ranking
3. GREECE
Ciprus 57 4,4 4
Turkey 61 5,1 1 4. CYPRUS
Greece
G 57 4,8
48 3 5. ITALY
Bulgaria 42 3,8 8
6. MOROCCO & NORTH AFRICA
Malta 41 3,7 9
7. FRANCE, USA & THE CARIBBEAN
8. BULGARIA
Other Total Average Ranking 9. MALTA
Morocco & North Africa 46 4,2 6
10. DUBAI
EUA & Caribbean 48 4 7
PALOP's 21 2,3 11 11. AFRICAN & PORTUGUESE SPEAKING
Dubai 21 3,5 10 COUNTRIES
ASSOCIATES
7
8. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS 5‐ SALES – LEVEL OF BUSINESS ACTIVITY
Q U A R T E R L Y M O N I T O R
1st quarter of 2009 compared with the 4th quarter of 2008
SALES VENDAS
For the majority of promoters, the
level of sales and business activity was
5% down, comparing the 1st quarter of
2009 against the last quarter of 2008.
In contrast most estate agents
contrast,
60% surveyed reported an increase of more
INCREASED BY than 10% for the same period.
MORE THAN 5% The Algarve was the region that
registered the l
d h largest increase in
business activity.
Individual comments:
Promoters
“Pessimism suggests that there are no real signs that the market is picking up although we do expect things to
Pessimism suggests that there are no real signs that the market is picking up, although we do expect things to
start turning around in due course.”
“The British market seems to be improving, while the Irish market continues to drop off.”
“Similar, but we're expecting sales to pick up in the second quarter.”
Estate agents
“We don't expect any variations in the domestic market during the next quarter of 2009.”
“Definitely more requests and more decisions to buy.”
ASSOCIATES
8
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PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS
5.1 SALES – AVERAGE VOLUME BY TYPE AND
AVERAGE PRICE PER SQUARE‐METRE
Q
Q U A R T E R L Y M O N I T O R
1st quarter of 2009
Apartments and villas account for
most of the sales by estate agents and
promoters. The average price per
square‐metre varies between 2,800
euros and 3,269 euros according to the
estate agents
g surveyed,
y , while
promoters report a price range of
between 3,119 euros and 3,296 euros
across the range of properties on
offer. Regarding the pricing of
properties during the 2nd quarter of
2009, promoters are more confident
than estate agents that the market will
stabilise or even increase.
Individual comments:
Promoters
“Positive results can always be expected regarding the shared
property market.”
Estate agents
“We're aware of the fact that there's currently a big difference in price
in the Algarve, although it varies according to the area.”
“In general, prices are between 20 and 25 per cent below the asking
p
price, with many deals being done at between 10 and 15 per cent less
, y g 5p
than the asking price.”
ASSOCIATES
9
10. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS 5.1.1 ‐ SALES – VOLUME BY TYPE (APARTMENTS)
Q U A R T E R L Y M O N I T O R Sales activity for the 1st quarter of 2009
Demand for apartments with four or more bedrooms is
low. Most properties sold were two‐bedroom
apartments (36 4%) followed by apartments with three
(36.4%),
bedrooms and less than two bedrooms, both of which
accounted for 22.7% of total sales.
Comparing information provided by promoters and
estate agents, there are some noticeable differences on
the graph, particularly in the sales volume of four‐
bedroom apartments.
According to those surveyed, sales volume will remain
stable (67%) or will increase (27%).
Individual comments:
“In general, there's a rise in demand for apartments, with sales prices at average or below.”
“We've seen a definite interest for apartments with more bedrooms in the best locations. We
believe that there will continue to be interest in properties of a higher quality.”
ASSOCIATES
10
11. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS 5.1.2 – SALES – VOLUME BY TYPE (TOWNHOUSES)
Q U A R T E R L Y M O N I T O R
Sales activity for the 1st quarter of 2009
In general terms, demand for townhouses is mostly for
properties with three bedrooms.
Estate agents report more interest for townhouses with
two bedrooms, accounting f 40% of total sales.
for f
67% of estate agents and promoters believe that this
level of sales volume will continue.
ASSOCIATES
11
12. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS 5.1.3 – SALES – VOLUME BY TYPE (VILLAS)
Q U A R T E R L Y M O N I T O R Sales activity for the 1st quarter of 2009
Demand for villas is more varied and mostly centred on
properties with four or more bedrooms
bedrooms.
Based on information provided by estate agents, the sale
of two‐bedroom villas accounts for 11.1% of total sales.
Villas are the most sought‐after property at the top end
f
of the market.
82% of estate agents and promoters agree that sales of
villas will continue at the same level, while 18% believe
,
that the figure will rise.
ASSOCIATES
12
13. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS
5.2 SALES – MARKET INTEREST IN THE 1ST QUARTER OF
2009, BY COUNTRY
9,
Q U A R T E R L Y M O N I T O R
PORTUGAL ENGLAND IRELAND SPAIN SCANDINAVIA GERMANY BENELUX
SIMILAR TO WEAK INTEREST WEAK INTEREST SAME OR LESS SIMILAR SIMILAR SIMILAR TO
STRONG WITH TENDENCY WITH TENDENCY INTEREST WITH INTEREST WITH INTEREST WITH STRONG
INTEREST TO REMAIN THE FOR EVEN LESS TENDENCY TO TENDENCY TO TENDENCY TO INTEREST WITH
WITH SAME OR REMAIN THE REMAIN THE REMAIN THE TENDENCY TO
TENDENCY TO INCREASE SAME OR SAME OR SAME OR REMAIN THE
REMAIN THE INCREASE INCREASE INCREASE SAME OR
SAME OR INCREASE
INCREASE
Interest shown by France, East European countries and Russia during the first quarter of 2009 varied between weak and the same level of interest
and the prospect for the second quarter is expected to be the same.
OTHER COUNTRIES AND REGIONS THAT HAVE SHOWN INTEREST IN PURCHASING PROPERTY IN PORTUGAL:
MIDDLE EAST, CANADA AND SOUTH AFRICA
ASSOCIATES
13
14. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS
5.3 – SALES – MARKET CONFIDENCE FOR THE 3RD
Q U A R T E R L Y M O N I T O R QUARTER OF 2009
CONFIDENCE IN THE SALES FOR
THE 3RD QUARTER OF 2009
56% OF THOSE SURVEYED
CLASSIFIED THE LEVEL OF
CONFIDENCE IN THE REAL
ESTATE SALES FOR THE 3RD
QUARTER OF 2009 AS
AVERAGE
Individual comments:
“Slight increase due to the recovery of the British market.”
“We're prepared for this year to be relatively negative in terms of sales ”
We re prepared for this year to be relatively negative in terms of sales.
“Due to uncertainty and lack of confidence in the market, we expect the price of property to continue sliding.”
“Slight but significant improvement.”
ASSOCIATES “It will increase gradually.”
“It will not fall. It will increase slowly.” 14
15. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS 6. HOLIDAY RENTALS – LEVEL OF BUSINESS ACTIVITY
Q U A R T E R L Y M O N I T O R
1st quarter of 2009 compared with the 4th quarter of 2008
The renting of holiday homes only
RENTALS applies to 8 of the participating
companies, of which 25% report an
increase in this sector. The Algarve
registered the biggest rise in holiday
87.5% rentals.
A RISE OF According to 80% of promoters
MORE THAN 5% surveyed, the level of business activity
in the holiday rentals sector increased
by between 5% and 20%, while estate
agents reported a rise of 10% or more.
Individual comments:
“Demand increased during the high season.”
“People don't want to sacrifice their holidays.”
“More direct bookings.”
“Customers tend to book their holidays for the period after the New Year celebrations wich accounts for the rise.”
ASSOCIATES
15
16. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS
6.1 HOLIDAY RENTALS – AVERAGE VOLUME BY
PROPERTY TYPE OF TOTAL BUSINESS ACTIVITY
Q U A R T E R L Y M O N I T O R
1st quarter of 2009
For promoters, the holiday rentals
sector is mostly centred on demand
for apartments (37.8%).
Business among estate agents was
more diverse, with villas and
apartments accounting for 18.8% and
16.2% of holiday rentals, respectively.
ASSOCIATES
16
17. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS 6.1.1 – HOLIDAY RENTALS – VOLUME BY TYPE (APARTMENTS)
( )
Q U A R T E R L Y M O N I T O R
1st quarter of 2009 compared with the 4th quarter of 2008
The types of apartment sought for holiday rentals are
very varied. The demand for apartments smaller than T2
is mainly thought promoters, while estate agents
achieved more rentals for apartments with four or more
bedrooms.
Regarding future prospects for the rental of holiday
apartments, 50% predict the same volume, while the
other 50% expect to see a rise in business.
Individual comments:
“The rise reflects the good price on offer, which has dropped about 10% on the year. Townhouses are considered
too expensive.”
ASSOCIATES
17
18. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS
6.1.2 – HOLIDAY RENTALS ‐ VOLUME BY TYPE (VILLAS)
Q U A R T E R L Y M O N I T O R 1st quarter of 2009 compared with the 4th quarter of 2008
t of 2009 o d ith th 4th t of 2008
In common with the rental of holiday apartments estate
apartments,
agents report that the largest percentage of demand is
for villas with four or more bedrooms, accounting for
66.7% of all business in this segment.
For promoters, all the demand has been f villas with
for
three bedrooms.
40% of those surveyed expect business to be the same in
the 2nd quarter, while 40% expect to see a rise.
q , 4 p
ASSOCIATES
18
19. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS 6.2 – HOLIDAY RENTALS – MARKET INTEREST IN THE 1ST
Q U A R T E R L Y M O N I T O R
QUARTER OF 2009, BY COUNTRY
PORTUGAL ENGLAND IRELAND SPAIN SCANDINAVIA GERMANY BENELUX
INTEREST INTEREST EITHER INTEREST THE INTEREST INTEREST THE INTEREST INTEREST
EITHER THE THE SAME OR SAME WITH EITHER THE SAME WITH EITHER THE EITHER THE
SAME OR STRONGER WITH TENDENCY TO SAME OR TENDENCY TO SAME OR SAME OR
STRONGER
O TENDENCY TO REMAIN THE STRONGER
O REMAIN THE STRONGER
O STRONGER
O
WITH REMAIN THE SAME LEVEL OF WITH SAME OR WITH WITH
TENDENCY TO SAME OR INTEREST TENDENCY TO INCREASED LEVEL TENDENCY TO TENDENCY TO
REMAIN THE INCREASED REMAIN THE OF INTEREST REMAIN THE REMAIN THE
SAME OR LEVEL OF SAME OR SAME OR SAME LEVEL
INCREASED INTEREST INCREASED INCREASED OF INTEREST
LEVEL OF LEVEL OF LEVEL OF
INTEREST INTEREST INTEREST
Market interest in East European countries during the first quarter of 2009 remained the same and the
tendency for the second quarter is for the level of interest to be sustained or to decrease.
Market interest in France during the first quarter of 2009 remained the same and the tendency for the
second quarter is for the level of interest to be sustained.
Market interest in Russia during the first quarter of 2009 ranged between the same and stronger and the
tendency f the second quarter i f the l
d for h d is for h level of i
l f interest to b sustained or to i
be i d increase.
ASSOCIATES
19
20. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS
6.3 – HOLIDAY RENTALS – MARKET CONFIDENCE FOR
Q U A R T E R L Y M O N I T O R THE 3RD QUARTER
CONFIDENCE IN THE RENTALS
FOR THE 3RD QUARTER OF 2009
70% OF THOSE SURVEYED
CLASSIFIED THE LEVEL OF
CONFIDENCE IN THE REAL
ESTATE RENTALS FOR THE
3RD QUARTER OF 2009 AS
Q O 9
MEDIUM TO HIGH
Individual comments:
“Bookings made later this year and more demand for a better price/quality ratio.”
ASSOCIATES
“Better year for rentals, with more demand from the Portuguese.”
20
21. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS
7 – MARKETING MEASURES THAT ARE BEING
CONSIDERED
Q U A R T E R L Y M O N I T O R
Promoters:
“Institutional presence at trade fairs ”
Institutional presence at trade fairs.
“To continue with PR activities and customer presentations. We're targeting the German and Angolan markets.”
“Target the fractional ownership market.”
“Promote activity packages (golf, children's soccer school, etc.) and payment plans.”
“Do business without spending money.”
“Target the golf market.”
“Be present at the real estate trade fair, run a media campaign in large circulation newspapers, do an extensive e‐mailing and Internet
promotion, organise special events on‐site.”
i i i l i ”
“Reduce sales and marketing costs, be alert and study the development of the domestic market, redefine our sales and marketing
strategy in the United Kingdom and Ireland, evaluate our product range, price and conditions of payment.”
g g y g ,p p
“Marketing activities tailor‐made for and targeted at customers selected by the estate agents we work with, partnerships with entities
that have the same clients in order to project a positive message, take advantage of hotel guests interested in this type of product and use
selected media to promote our strategy.”
“Local marketing activities, targeting of key markets, sales calls, partnerships, strengthening the sales team and presentations to the
public through our partners.”
“We're going to concentrate on tourists visiting the Algarve because we consider them to be high‐potential prospective buyers.”
ASSOCIATES
21
22. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS
7 – MARKETING MEASURES THAT ARE BEING
CONSIDERED
Q U A R T E R L Y M O N I T O R
Estate agents:
“Organise one‐to‐one marketing activities where we can approach people and sell them our product directly. We're thinking about avoiding
heavy media campaigns and using more marketing.”
“Net‐marketing, press relations, networking activities and the launch of a client loyalty programme.”
“N t k ti g l ti t ki g ti iti d th l h f li t l lt g ”
“We're keeping in contact with the British media and stopping advertising in Portugal.”
“Google and our website are the key methods of generating requests. Using the local media to create brand awareness and generate
g
listings. Greater emphasis on PR, especially in key markets such as the UK, Benelux, Scandinavia and the Middle East. Promotion in
conjunction with estate agent partners in other countries via electronic communication and networking.”
“Web‐marketing and partnerships with estate agents..”
“More cross‐selling activities.”
“Taking part in events.”
ASSOCIATES
22
23. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS 8. CONCLUSION
Q U A R T E R L Y M O N I T O R
After a period of very low confidence, and according to some of the promoters and estate agents surveyed, the
market could be stablized.
The companies that predicted a rise in confidence in the previous edition of 10-10-10 for the 4th quarter of 2009
(signs of which are already visible in the 2nd quarter) maintain with 50% classifying the level of market confidence
as “medium”.
medium
As a rule, there's less interest in the more established tourist destinations where there's a greater supply,
particularly during a period in which price is more important for those looking to buy a real estate product, with
value for money and market confidence being the main considerations when purchasing a property.
Among the top-ranking destinations for the first quarter of 2009 the biggest threat to Portugal came from Turkey
2009, Turkey,
which overtook Spain, traditionally the most popular location for residential tourism. The reason for this is the
FOR THE 3RD catastrophic impact of the current economic crisis in Spain, which has affected both prices and the number of
QUARTER OF properties available, in addition to Turkey's increased efforts to promote and sell itself as a residential tourism
O 2º TRIMESTRE destination.
2009, THE
DE 2009 DEVE
PROSPECTS ARE
APRESENTAR
MORE SALES
UMA LIGEIRA
FAVOURABLE
Regarding sales, the slight increase in enquiries and properties sold has in turn triggered a rise in market
MELHORIA
COMPARED WITH confidence. The Algarve is the region that has benefited most from this increase, explained perhaps by signs of
COMPARANDO
THE 2ND recovery in the British market.
QUARTER
COM O 1º
TRIMESTRE
ASSOCIATES
23
24. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS
Q U A R T E R L Y M O N I T O R 8. CONCLUSION
8 CONCLUSION
SALES (continued)
According to both the promoters and estate agents surveyed, apartments and villas are the properties most
sought after, with prices per square-metre varying between 2,800 euros and 3,296 euros (for estate agents)
and 3 196 euros and 3 296 euros (for promoters) The difference in these prices we conclud comes from the
3,196 3,296 promoters). prices,
fact that estate agents have a more diverse range of properties to sell. It's interesting to note that in terms of
pricing during the 2nd quarter of 2009, promoters showed more confidence in maintaining or increasing prices.
Regarding the amount of market interest in each country, there's an equal to strong level of interest in the
domestic market. Interest from the British market, despite being small, shows signs of stability or even a slight
recovery, while the low level of interest in the S
f Spanish market also suggests the possibility of a slight increase.
f
Ireland, one of the strongest markets up until 2008, still shows little interest and a tendency to diminish further.
FOR THE 3RD
QUARTER OF
O 2º TRIMESTRE RENTALS
2009, THE
DE 2009 DEVE Despite th f t th t only eight of th companies surveyed operated i thi fi ld th volume of h lid rentals
D it the fact that l i ht f the i d t d in this field, the l f holiday t l
PROSPECTS ARE
APRESENTAR increased significantly in the 1st quarter of 2009 due to the seasonality factor. In terms of the product mix,
PARTICULARLY
UMA LIGEIRA which was mostly focused on villas and apartments, estate agents reported more interest in villa rentals.
FAVOURABLE Portugal, England, Spain and Germany are showing a market interest ranging from “similar” to “strong” with
MELHORIA
COMPARED WITH tendency to increase. The volume of holiday rentals in villas and apartments looks likely to continue at the
COMPARANDO
THE 2ND same le el or e en increase In the ne t q arter (J l A g st and September) the le el of confidence in the
level even increase. next quarter (July, August September), level
QUARTER
COM O 1º holiday rentals market is estimated as medium to high.
TRIMESTRE
ASSOCIATES
24
25. PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS
Q U A R T E R L Y M O N I T O R
ILM, celebrating its 10th anniversary of consolidated development, was founded in 1999 by Andrew Coutts with the
objective to render a service of strategic consultancy in tourism, hospitality and leisure for the national market. In
these 10 years of experience, ILM has grown organically and has evolved to the point of currently occupying a leading
position in tourism consultancy. Oriented by the market and by innovation, ILM’s mission is to actively contribute to
the sustained development of the national hotel and tourism sectors, being the only independent consultancy
company specialized in the development and implementation of residential tourism projects.
Through ILM, several important structural projects were developed in Portugal, such as the Identification and
Business Planning of the 10 Strategic Tourism Products defined in the PENT ‐ National Strategic Plan for Tourism NSPT,
g g g ,
and landmark projects for Portugal as a quality tourism destination, namely Praia Del Rey Marriott Resort, Hilton
Vilamoura, Conrad Quinta do Lago or Corte Velho by Six Senses.
The development of the PENT project, in partnership with THR, gave rise to the establishment of the official strategic
partnership with ILM THR Advisors in 2006 THR was founded in 1985 by Eulogio Bordas its current President
ILM‐THR 2006. Bordas, President.
Starting its activity in Spain, THR renders its services all over the world, being referenced in EMEA as the major
company of its category and so being permanently sought by companies and governments of various countries as
well as by international institutions such as the European Union (EU) and the World Tourism Organization (UNWTO).
ASSOCIATES
26. VIRONMENT + AUTHENTICITY + TRAVELERS + COMPETITION + TRENDS +
CIILITIES +
PORTUGAL RESIDENTIAL TOURISM MARKET INTELLIGENCE
10 10 10
QUESTIONS DEVELOPERS AGENTS
CONCEPTS + INNOVATIO + STRATEG + INVESTMENT + HOTELS + RESORTS + LEISURE FAC
Q U A R T E R L Y M O N I T O R
C
WHERE TO FIND US
FEASIBILIT + SERVICE + EXPERIENCES + EXCELLENCE + OUR CLIENTS DREAM.
D
S
Praça Duque de Saldanha • Ed. Atrium Saldanha 10º J • 1050-094 Lisboa • Portugal
Tel.: ( 351) 213 145 481 • Fax: (+351) 213 145 482 • e-mail: info@ilm portugal.com
(+351) ( 351) e mail: info@ilm-portugal.com
A
www.ilm-portugal.com
GY
TOURISm2 = ASSETS + TERRITORY + ENV
ON
TY
S
ASSOCIATES