Real estate investment: how does it work?

Due to the pandemic crisis that affected the world, in 2020 the real estate investment decreased.

2.6 billion euros were invested in commercial real estate. On the other hand, the purchase of houses in Portugal registered 24 billion euros.

Despite the 20% drop compared to the record set in 2019, the real estate sector was quite resilient in relation to the crisis that affected the world.

Investment in the real estate business has always been and will be a good bet. However, it is essential to have in-depth knowledge and the experience factor on your side, to understand the dynamics of the sector. In today’s article, we share some important advice when it comes to investing in real estate.


real estate investment


Real Estate Market Analysis

Do you usually search on the Internet before buying a new product? Well, before investing in a property you must do the same. Knowing how to analyze the market, based on a macroeconomic framework, can have positive results. In addition, it is important to know your target audience. Therefore, we have selected the following characteristics that you should take into account:

  • Country;
  • City;
  • Street;
  • Population.


In this context, it is essential to prepare not only the market for the current generation but also for a new generation of consumers. Since Generation Z is already part of the real estate sector, it is important to adjust your mindset in order to follow the requirements of this audience.

To help to make investment decisions, real estate evaluation is another important tool. Why? Because it allows to:

  • Know the value of the real estate asset compared to other properties on the market;
  • Understand the potential of the balance between gains and investment. If it is above the value you are buying, there is a greater potential for profit.

Real estate investment and the crisis

real estate investment


In 2020, we registered a slowdown in the economic prospection of the sector. Due to the current situation of the COVID-19 pandemic, investment by foreigners decreased and, consequently, the sector’s financial dynamics changed.

It is important to understand that the real estate sector is one of the most resistant to crises than other financial assets. It is in the crisis that the greatest business opportunities appear! Understanding the change in consumer behavior is very important to quickly adapt your business to a new reality.

If you want to invest in a real estate asset and need professional advice, contact us. Castro Group has all the availability to guarantee a response to the challenge.

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