1. Professional Association of Valuation Companies of Portugal
“Portugal: How did valuers survive the downturn? Did they develop new skills and fields of activity and are they still relevant in the current rising markets?”
by Paulo Barros Trindade REV, President of The Board of ASAVAL Athens, 19 October 2018

2. Valuation Companies Reaction
“Portugal: How did valuers survive the downturn? Did they develop new skills and fields of activity and are they still relevant in the current rising markets?”
Overview
Valuation Companies Reaction
Regulation – new rules
Where do we stand today
ASAVAL

3. Overview
ASAVAL

4. Overview
ASAVAL

5. Overview
Besides the fact that total credit decreased in the period the number of valuations requests for the finantial sector increased after 2014 because of the increase in non performing loans and renegociation of terms and interest
ASAVAL

6. Overview
honorarios
Valuation Fees for Sample portfolio of 8 different properties
ASAVAL

7. Overview
honorarios
Valuation and Revaluation Fees for Sample portfolio of 8 different properties
ASAVAL

8. Valuation requests during the downturn decreased to 1/3
Overview
Valuation requests during the downturn decreased to 1/3
Valuation fees during the downturn decreased to 1/3
Revaluation of collaterals (rules of ECB and BP) represents now around 35% of the total valuation requests
Besides the fact that total credit decreased in the period the number of valuations requests for the finantial sector increased after 2014 because of the increase in non performing loans and renegociation of terms and interest
ASAVAL

9. Valuation Companies Reaction
Downsizing
Concentration (closing office branches)
Reducing staff
Introducing new services
Energetic Certification
Companies Valuation
Consultory to bank branches relocation
Quest for new markets
Internationalization
ASAVAL

10. Regulation – New Rules
Bank of Portugal (BP) – aplly ECB rules and more – strict rules for collaterals revaluation
New law (Law 153/2015) that regulates the activity of valuation of property for the finantial sector
New Regulator – CMVM-Portuguese Securities Market Commission (before 2015 regulated only the activity of valuation for real estate funds)
ASAVAL

11. Where do we stand today
Just some of the companies that found new international markets remain on those markets
Downturn and more strict regulation reduced considerably the number of valuers working for the finantial sector
Economic return increased loan activity and therefore valuation requests
Shortage of CMVM’s accredited valuers in the market brought to higher salaries for internal valuers
Valuation Companies concentrate their activity manly on valuation and give up other services or develop spin-off companies for this services
ASAVAL

12. Finally, Where do we really stand?
At the limit of unsustainability
Persists downturn valuation fees and heavy resistence to update them
Higher costs due to higher internal valuers salaries and new regulation costs
Unfair competition from companies that don't comply with ASAVAL’s Code of Conduct and Ethics – need for better regulation
ASAVAL

13. We still have a long way to go
Thank you