Real estate has attracted many investors in Portugal in recent years, being considered an attractive sector due to the profitability it offers, as well as being seen as a key and safe piece in building long-term wealth. It has shown resilience in the face of various challenges, from the pandemic to the war in Ukraine, the inflationary crisis, changes in interest rates, changes in housing supply/demand, and more recently the worsening of the conflict in the Middle East, whose real impact is yet to be seen. And investing savings in buying a house - to live in or rent out - continues to be, in general, the main investment decision for Portuguese families, also becoming a "safe haven" asset in more professional wealth management strategies. But this market "is not immune to cycles," as Bárbara Barroso, founder of MoneyLab, explains in an interview with idealista/news.

The expert – who has, for example, been a trainer within the scope of the National Financial Training Plan, promoted by the Bank of Portugal – believes that the attractiveness of real estate depends heavily on the market and economic climate, location, and personal investment management capacity. It is an attractive segment that can be safe if well managed, but it is not risk-free. It depends, for example, on the macroeconomic context, fiscal and regulatory changes, or financing and monetary policy conditions.

Therefore, Bárbara Barroso argues that before investing in a property, or another instrument in this sector (whether REITs, investment funds, etc.), it is essential to analyze three key points: financial capacity, objectives, and risk. In general, one of the most common mistakes is "looking only at the purchase price and potential appreciation, ignoring all the costs and variables that influence real profitability," she warns.

For young people, the main recommendation is "to start with knowledge and not with the product. Understand how the different instruments work, what your risk profile is, and invest gradually," advises the founder of this financial literacy and education laboratory, which aims to simplify the world of personal finance and empower people to make better choices regarding their budgets and financial lives.

Those who want to successfully take advantage of real estate investment opportunities should avoid decisions conditioned by external pressure or emotion, especially since a successful investor "analyzes numbers, diversifies, manages risk, and maintains consistency," says Bárbara Barroso. "Prudence is an essential part of the decision," emphasizes the head of MoneyLab, who has more than a decade of experience in the market and is now organizing an online event on real estate investment on March 30th.

In this interview, the consultant, with a background in banking, communication sciences, and coaching, analyzes the market and offers some important insights on investing in real estate in an increasingly volatile world – currently marked by wars and other geopolitical factors affecting the global economy, local and international business, as well as the personal finances of those living in Portugal.

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Given the current international geopolitical context and the national economy, how does real estate currently position itself within a Wealth Management perspective? Why?

In a context of geopolitical uncertainty and global economic reconfiguration, real estate is once again asserting itself as a benchmark asset in wealth management strategies. Not only because of its tangible nature, but above all because of the perception of control it offers investors in an increasingly volatile world.

However, this perception of security must be rigorously analyzed. Real estate is not immune to cycles, nor is it protected from changes in fiscal, regulatory, or financing conditions. Integrated into a Wealth Management vision, it should be treated as a strategic asset, but never in isolation. True sophistication in wealth management lies not in concentration, but in intelligent diversification.
(...) perception of security must be rigorously analyzed. Real estate is not immune to cycles (...)
Analyzing from a global point of view, is real estate currently a sector that can be considered interesting for the profitability it offers as a savings and investment solution? And in terms of risk/security? Which client profile do you fit best?
Real estate can be interesting from the point of view of profitability. Still, attractiveness depends heavily on the market moment, location and investment management capacity.
In terms of risk, it is not a risk-free asset, not only because there is a risk of devaluation, tax changes, vacancy, as well as increased financing costs, among others. The perception of security often comes from the fact that it is a physical asset.