The Portuguese economy is showing confidence to investors

  • Início >
  • Notícias >
  • The Portuguese economy is showing confidence to investors

The Portuguese economy is showing confidence to investors
Reading time: 5 minutes
Published: 28th November 2019, 12:13pm

Portuguese economy shows signs of continuous and stable growth giving confidence to investors. Investors realize that there are still several types of real estate investments available in sectors such as Hotels, Residential and Retail. Adding to this, Lisbon has an advantage and much lower occupation costs when compared with other European cities.

Read more about the present Portuguese economy status in our article “Portugal’s bright outlook offers Europe some hope

Stability and a positive evolution

The Portuguese economy is showing confidence to investors

A study from Cushman & Wakefield reveals that the Portuguese economy is giving confidence to investors, from its stability and positive evolution. The growth for 2019 is around 2% and predicted to continue this upward trajectory in the next two years. This derives mainly from private investment, with a growth expectation of 6.4%, and consumption, which is expected to reach 2% in 2019.

 

Commercial Property is reaching high demand

Companies are occupying office spaces in the Portuguese capital city and this type of property has seen its availability drop over the last couple of years. With 149,000 sq m of office space leased under 130 deals, there was a new record high of average deal size. 

Between January and September of 2019, the office vacancy rate in the Greater Lisbon area has dropped to 3.9%, counting 130 deals of 1.150 sq.m average size. Although the number of deals may not impress, the average area per deal is twice the average size of the past 10 years and tells us that these deals were done with large companies occupying plenty of space.

This low occupancy rate hints at a growing demand caused by the positive market environment and leads to an increase in the value per square meter of this type of property. As a consequence, construction is increasing because right now it only represents 82% of the total area forecasted for the next 3 years.


Tourism is driving the retail transactions

The Portuguese economy is showing confidence to investors

Lease transactions in retail registered a growth of 50% year-on-year until the third quarter of 2019, with 620 deals. High street locations represent 67% of the transactions with a sum of 410 deals, followed by shopping centres at a distance (18%). 

The Restaurants sector is the most active in retail, with 55% of leases registered in this period, followed by Fashion and Leisure & Culture. The non-food sector must be highlighted because it grew 6.4% against 4.2% growth in the food sector.

 

Portuguese Exports are driving new industrial and logistics projects

The estimated growth in Exports for the eurozone in 2019 is 2.1%. However, Portuguese evolution predicts a growth of 3.9% over the same period. 

The scarcity of modern quality facilities is soon to be overcome with the imminent development of new projects in the Greater Lisbon area, providing a new dynamic in the Industrial & Logistics sector. Increased activity in e-commerce and retail are driving the imminent development of new projects including two logistics platforms that make a total of 340.000 sq.m area.


Investment in Commercial property

Over the course of 2019, investment activity registered a total of 1,700€ million in 45 Commercial Real Estate deals. With around 1,300€ million of transactions currently in various stages of negotiations, it is estimated that the total investment volume could reach a new record high above last year’s results, at around 3,000€ million invested.

With Prime Yields remaining stable for Offices and High Street Retail, at 4%, and for Shopping Centres, at 4.75%, the most sought-out investments reflected this. The Office sector registered 34% of investments, followed by Retail at 32% and Hotels with 26%. The Industry sector registered only 6% of the investment, with yields decreasing to 6%. 

 

Source: Cushman & Wakefield

The Portuguese economy is showing confidence to investors

About Portugal Homes

PortugalHomes.com specializes in investments through real estate and Golden Visa. We help buyers find the right property overseas, whether it be for Golden Visa, NHR, Investment or simply a place in the sun. Our properties are selected with great thought in mind to give our clients the best opportunities. We offer the complete service from introducing them to the Legal Representatives, Currency Exchange, Mortgage Advisors, Property Management, Rental and Furniture Packages along with making sure all our staff are trained to fully understand the buying process and taxes for every scenario. Portugal Homes provides the complete service to anyone looking to buy a new or resale property overseas for holiday use or as a short or long-term investment.

To find out more, please contact us:

  • Phone: +351 213 471 603

  • E-Mail: info@portugalhomes.com

29th November 2019
Not long ago, Portugal was the backwater of Europe; today it is becoming…
28th November 2019
Portugal continues one of the top trends for the real estate market in…

Comprar uma propriedade em Portugall

A Portugal Homes possui profissionais muito experientes e conhecedores, que trabalham com alguns dos promotores mais reconhecidos em Portugal . A nossa vasta experiência permite-nos guiá-lo pelas melhores opções de investimento.

Seja casa de férias ou uma propriedade para investimento, selecionamos as melhores propriedades para o seu perfil e tratamos de todo o processo do início ao fim. Mesmo após a venda! Os nossos serviços de pós-venda assumem a responsabilidade de mobilar a seu gosto, manter a propriedade na sua ausência, dar apoio ao arrendamento, no caso de querer arrendar e muito mais!

Para saber mais sobre Residentes Não Habituais em Portugal e sobre os nossos serviços pós-venda, preencha o formulário abaixo.

É fantástico como o Ryan tinha um conhecimento completo sobre Lisboa e nos tratou da melhor maneira.

Akbar Ali - Investidor do Paquistão

Ryan é muito profissional, mas também amigável e conhecedor do mercado Golden Visa. Também se mostrou flexível, pois, com um curto aviso prévio, viajou do Algarve para me se reunir comigo em Lisboa e substituir 1 colega.

Investir do Reino Unido

A Portugal Homes fez um excelente trabalho mantendo-me atualizado sobre o progresso da compra da minha nova casa, fornecendo relatórios regulares e abrangentes. Isto ajudou-me a aliviar a ansiedade sobre a compra de uma casa durante a pandemia.

Investidor dos EUA

Embora através do Zoom, estabelecemos uma grande confiança na integridade do George. [Foi] importante para nós ter confiança na capacidade do staff em se sentir alinhados em visões.

Donald Collie de Austrália

O processo foi bastante rápido e claro. Obtive toda a informação que precisava na primeira hora de conversa. A experiência foi perfeita.

Tomoko Inoue do Japão

Overwhelming. Luisa has exceeded our expectations on all levels. Trust was established immediately. Enhanced by super friendly professionalism. The networks to banks, accountants, lawyers was seamless. there is not enough space here to write all the positives, enough to say we are making an offer and we only arrived 4 days ago. Its impossible to improve from perfection!

John Mulroe and Wiebke Bock