Gavari CEO Affirms Long-Term Confidence in Portuguese Housing Market
The Spanish real estate manager Gavari, which began its international expansion into Portugal at the start of 2025, remains steadfast in its commitment to the nation's housing sector, according to CEO Juan Merino. In a recent interview with idealista/news, Merino described housing as an “asset class that will exist forever,” underlining the fundamental human need for shelter as a constant that transcends economic cycles. Despite the unpredictability shown by the recent pandemic and geopolitical events, Gavari is focusing its strategy on residential assets, including rental homes, co-living, and student accommodation, while avoiding office and retail segments. The firm has already invested approximately €100 million across 10 projects in the Iberian Peninsula and plans to deploy another €200 million over the next three years, with Portugal designated as a key market. This strategy is particularly relevant for those following investment and strategy guides for the region.
Gavari's entry into Portugal was marked by the development of a student residence, a project that highlights the firm's strategic focus. A €30 million investment is funding a 400-bed facility in Quinta da Caparica, Almada, a municipality in the Lisbon metropolitan area. The project's inauguration is anticipated for September 2026. Merino noted that the construction is proceeding on schedule. The location is considered strategic, situated just meters from three universities—Universidade Nova, Egas Moniz, and Instituto Piaget—which collectively serve over 12,000 students. The CEO pointed to Lisbon's student housing market as having one of the lowest supply rates in Europe, at around 4%, with occupancy rates nearing 100%. The foundation stone ceremony was recently attended by Almada's Mayor, Inês de Medeiros, signifying the project's importance to the local community and academic ecosystem.
Looking ahead, Merino confirmed that Portugal will be central to the company's growth. “Portugal will undoubtedly play a fundamental role in this strategy, especially in projects for student residences and rentals, where we see a structural need and an opportunity to add value with our investment model,” he stated. Beyond the Lisbon area, the company has identified Porto as the next major market for investment. Merino observed many similarities between the two cities, characterized by high demand for student housing that far outstrips the available supply. While Gavari's investment base has been Madrid, Málaga, and Lisbon, the company remains open to opportunities in other cities that offer sound investment fundamentals and a clear exit strategy for investors. For those looking to enter this market, consulting with agents specializing in investment properties is a logical first step.
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The company's investment thesis is built on achieving high occupancy and profitability. Merino reported that Gavari's socimi (the Spanish equivalent of a REIT) has maintained a gross operating return of 6% to 9% over the years, with a target of around 7% for 2025. This performance, he explained, is not merely opportunistic but the result of “very methodical management and close monitoring of projects.” The firm employs a dual strategy of acquiring and renovating properties, often through off-market channels, and engaging in new development. The CEO acknowledged that market dynamics have shifted, making it more challenging to find affordable opportunities and requiring greater effort to achieve desirable returns.
When questioned about the risk of a real estate bubble, Merino was unequivocal. “I do not see the risk of a real estate bubble, understanding a bubble as something that will explode and imply a price correction,” he asserted. Instead, he anticipates a potential “stabilization of prices” at some point in the future but does not foresee a sharp, double-digit adjustment within the next 15 years under normal market conditions. He attributes this stability to the ongoing imbalance between supply and demand, fueled by population growth. He also commented on Portugal's favorable environment for SIGIs (the Portuguese REIT structure), suggesting it could be a “suitable vehicle to channel our activity in the country” when the time is right. Merino concluded by emphasizing Portugal's solid fundamentals, including economic growth and stable demand, which provide the long-term confidence needed to continue investing, regardless of short-term political instability. Investors can stay updated on these dynamics through ongoing market intelligence and analysis.
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