Lisbon-based Grupo Sil is planning to develop as much as possible in time for completions from 2023 to 2025. The group’s chairman, Pedro Silveira, believes that is when the market will start to pick up and he wants to be ready when it does.
At present he says investment decisions are being delayed and occupiers are still gauging the effects of the pandemic on their businesses. “Everybody’s being cautious, there’s less business, there’s fewer rentals and sales than there were two years ago,” he told Real Asset Insight’s Richard Betts.
Referring to the time lag that occurs in the property industry between an increase in occupier demand and resultant increase in supply, he said that the lack of speculative development that occurred last year and which is likely to persist until 2022 means that there is likely to be a shortage of space in three years’ time.
“But I think when things start picking up in 2023 and 2024 then our industry is going to be behind, as usual, and prices will skyrocket. We will definitely have a huge recovery in those two years.”
Click on the video above to watch the full interview or listen to the podcast below.