Is it worth investing in your project?
- Karolline Dutra
- Dec 3, 2021
- 2 min read
Updated: Dec 18, 2021
The real estate sector has been accelerating more and more in Portugal and the country continues to be one of the best in the world for investing. But do you know if your project is worth investing in?
Every project has a cost that must be addressed throughout its execution. An innovative idea needs care and attention to avoid wasting time and money. There are several investment analysis techniques to know if your project is viable or not.
In an investment project, a detailed analysis is performed where three scenarios for the project are considered (bad, good and very good) and the possible risks that may arise during the project are considered. At the end of the analysis, the investor will obtain a more comprehensive overview of the project – the investments, necessary expenses and the return on investment – making it possible to implement their idea with greater objectivity and confidence.
Depending on the investment analysis, the project costs are recalculated, the scenario is modified and, if necessary, the closing deadline is changed, so that the entrepreneur does not take risks that could cause financial damage. Almost every entrepreneur is concerned about risks, but not everyone is willing to take risks.
Investors and entrepreneurs have become increasingly interested in developing business in Portugal, whether commercial or residential. Real estate investment has accelerated more and more in 2021. However, many of these individuals do not know if the project is viable or not.
According to data released by JLL in Market Pulse, a quarterly study with analysis of real estate investment, the sector has been accelerating more and more in the country in this year of 2021. Investment in commercial real estate reached 1.173 million euros until September 2021 and could reach 2.500 million euros by the end of this year. However, in house market there is a high level of sales activity still in plant, which tells us that there is little supply in a context of strong demand. International buyers accounted for 52% of sales in the 3rd quarter, as part of the activity promoted by JLL.
Therefore, the news proves that Portugal is one of the most sought after countries in the world to invest. However, these data are not enough to move forward with a project in Portuguese lands. Despite all the enthusiasm, strength and motivation, it is essential to analyse whether the investment is viable or not, be it commercial or residential. It is necessary to understand the market, the place of implantation, the interests, gather data under analysis, so that a decision can be taken.
Do you want to know if your project is worth investing in? Contact us for more information.
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