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Also in the year 2021, the real estate market in Portugal continued to flourish. Like the previous year, 2021 also ended in the shadow of the coronavirus, but various sectors in the real estate market have shown that they have the capabilities and means to overcome the crisis. In 2021 Portugal attracted international investors and giant companies that invested in the real estate market.
When talking about real estate, many think of residential properties for sale or rent. But the real estate market is very diverse and includes fascinating and rewarding investment opportunities that are far beyond residential real estate. The Portuguese economic magazine Idealista told about the various real estate sectors that have experienced growth In 2021 in Portugal and in which huge international companies invested. These sectors included commercial real estate, office real estate and logistics properties as well as student and senior residencies.
One thing seems certain: Portugal has remained on the radar of investors, national and foreign, who see the country as the ideal place to expand their business.
Read about the sectors that have experienced growth in the past year and will continue to be leaders in 2022 as well and choose the investment sectors in Portugal that you are interested in!
Great demand for logistical assets
Companies are chasing office space – one of the leading sectors for 2022
Investments in dormitories and student housing
One of the most attractive sectors right now: senior residencies
A great demand for logistical assets
Logistics has been crowned as one of the winning sectors in the Coronavirus era because of the development of e-commerce, the online commerce that has experienced a global leap since the onset of the plague.
The business of logistics assets has soared and now there is a small supply for a large demand. To explore this sector, North American giant Goldman Sachs Asset Management has announced that it will invest more than € 1,000 million in Portugal and Spain, with the aim of developing new logistics platforms over the next three years.
Moreover, this is a trend that has already occurred in 2020, following the sudden appearance of the coronavirus. In the same year, 272,000 square meters in Portugal were used for warehouse space and logistical purposes, representing a growth of 24% compared to 2019, and is also the third-highest value ever in Portugal, according to the consultant of the commercial real estate giant – CBRE.
Several companies have announced expansion plans in Portugal. Here are some of the well-known businesses of 2021:
• The Belgian company VGP invests more than 100 million in Portugal
• Merlin opens the largest logistics park in the country with cargo ships with an area of over 45,000 square meters
• Liddle is investing $ 73 million in a semi-robotic logistics center in the North
• A park of the German company Green Logistics will be completed in Zambuzja (the outskirts of Lisbon) with a logistics warehouse covering an area of 115,000 square meters.
• Novo Banko sells old Lisgraphic facilities in Airas
• Marcadona is expanding in Portugal and wants a large logistics center in Elmeir
• Bankinter and Sonae Sierra acquires a logistics warehouse for NIS 13.15 million
• Real Estate Bank: BCP Bank sells a warehouse in Palma in Stubble that covers an area of 26,000 square meters for 1.4 million euros
• Searching for warehouses near cities is fueling the growth of online commerce during the pandemic
The companies are chasing office space and estimate that this is the field that will lead this year
“Portugal is a land of growth and opportunities for our businesses,” said Jean-François Couëc, co-manager of the Kardham Group, which set its sights on Portugal in October. Pedro Lancastre, CEO of JLL, also warned in the middle of the year that there is a great demand in this sector in Portugal.
At the same time, when telephone customer service “takes up space”, many companies are adapting their office spaces or investing in new infrastructure. Regarding teleworking, it is important to say that Lisbon is considered the third best city in the world for telephony service, being just a little behind Bangkok in Thailand and New Delhi in India.
These are some of the significant investments that have been made in the field this year:
• A unique office space offer in the Alegria One building in a central location in Lisbon purchased by the EastBanc Bank for 11 million euros.
• Mercedes-Benz.io, a company that develops technological solutions, will open offices in Braga in 2022 and recruit over 100 employees
• The main office building in the ICON project, of a company Civilria located on Boavista Boulevard in Porto, is in the final stages of construction.
• The offices of Ascendi, a franchisee of the highway, were set up in the former building of Litografia Lusitana on Boavista Boulevard – central location in Porto
• eDreams – the online tourism giant in the world establish a technology center in Porto
• The English group Kantar, which provides data analysis, marketing, and consulting services to companies and brands, will establish a center in Porto with an investment of 4.3 million euros and is expected to employ 200 people by the end of 2022.
• Uber’s new offices in Lisbon have already opened and cost 90 million
• A world trade center comes to life outside of Lisbon
• A French millionaire buys 17 properties in Portugal for 120 million euros
Investments in dormitories and student housing
There are many investors who see Portugal as an attractive investment in student housing. 2022 has started with a lot of news proving this, with the opening of a number of accommodations in this area of the real estate market. “Portugal presents itself as one of the markets with the greatest potential for the development of student housing projects,” said Alexandra Gomes, head of research at Savills Portugal recently, adding that Lisbon should be one of the most attractive European-level locations in this field.
One of the buildings that opened its doors this year in Portugal (in Porto) was the Studyou which is located in the center of the University of Esperella and has, for example, a cinema, a bar and a garden with a barbecue.
In the past year, a number of student housing projects have been embroidered, as can be seen below:
• The Portuguese company Ageas will build student dormitories in Asperla, next to the University of Porto’s engineering building that will include 265 rooms.
• The Valeo Group has opened a student dormitory building on the campus, near the subway station. It has 470 beds, 423 rooms spread over 16 floors, and four types of accommodation.
• BigCity, a company specializing in the development and management of real estate properties for students in Europe and Reditum Capital, will open a new building for student dormitories in Asperla in Porto with an investment of about 30 million euros.
• At the height of the Corona epidemic, the North American group Valeo opened its first student residences near the University of Porto’s Faculty of Economics. It will include 15 floors and 410 residential units.
Lisbon is in a student dormitory program in the western wing of the Santa Apollonia Passenger Building and will include at least 173 beds. In addition, in 2020 the My Home in the City residential building adapted to the new reality of the Coronavirus and began to house not only students and tourists but also young workers.
Residence for seniors, an opportunity in the field of real estate
In 2020, the Idealista website wrote that senior housing is an opportunity for investment in Portugal. A year has passed and yes … this investment trend has been approved. According to a study by real estate giant CBRE, in less than 30 years, more than a third of the population living in Portugal will be elderly. This equates to a total of 3.3 million people and will create a need for an additional 55,000 beds for seniors.
Another report by Savills concluded that the residential area for the elderly is attracting more and more investors and is perceived as one of the most attractive sectors at present. One of the companies that will enter this field is the Spanish Thor, which will enter Portugal with three types of housing for the elderly: each will have 120 beds and they will be located in Stubble, Guimaras and Algarve.
One of the niches that are recommended to take into account in the sector is the senior housing of the LGBT community. Often, they grow old in solitude, have no children, and experience alienation from the family. Many countries have already invested in this niche and it has everything to succeed in Portugal as well. In 2021, Orpea bought 12,800 square meters of land in central Alberca, on the outskirts of Lisbon, and will build a residential center for the country’s third, ninth, with a clinic and hospital.
Those who invest in Portugal have significantly increased their profits in recent years. We see that this trend of a thriving real estate market is expected to continue in 2022 as well so it is advisable to take advantage of the window of opportunity that is still open, long before what appears to be the realization of Portugal’s price potential.
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