The State of the Portuguese Real Estate Market in November

With the end of the year almost at hand, the month of November proved to be a dynamic period in terms of new investments and transactions. Operations of great importance were witnessed in the real estate market, a little across all segments. To highlight is the housing segment, which has been distinguishing itself more and more, trying to fill for the lack of offer in this segment, in Portugal. The office, retail and hotel segments were also very relevant to the growing speed of news.

Housing

At the beginning of the month, it was announced that Barreiro will receive a new development, the JaBa – Jardim Barreiro. The new residential project consists of three buildings, incorporated into a single development, creating a complex of modern flats, which rise in the historic centre of the city.

In the middle of the month, the real estate developer, IMOLOTE – Investimentos Imobiliários, announced the investment of 5 million euros in the reconstruction of a vacant building. Dom Hugo will be built in the historic centre of Porto and will have 16 flats aimed at the segment for youth. Reconstruction will begin in 2023 and completion is expected by the end of 2024.

Fercopor announced a new luxury development in Porto, named PURE. The new real estate project is the result of an investment of 18 million euros. It is located in Boavista and is scheduled for completion in 2025. The development comprises three buildings that are linked by landscaped alleys.

With November coming to an end, ADDSOLID announced the investment of 30 million euros in a new project in Loures, which brings together housing, commerce and a vast network of services, with emphasis on a senior residence and a long-term care unit.

Another investment was also made public, this time by GFH, which went ahead with the new residential project “The Yard”, located in Jardins da Arrábida, in Porto, close to Arrábida Shopping and the future Porto-Gaia underground. The construction process began this year in May, and the first residents are expected to arrive in the second half of 2024.

At the end of the month, Avenue launched the “Sandwoods” residential project, with an investment of 70 million euros. Sandwoods, comprising 39 houses (Pool Villas) of typologies T3 and T4, and 6 dwellings (Main House) comprising typologies T1 to T4, is located close to Lisbon and to the Sintra-Cascais Natural Park as well as to Quinta da Marinha.

Offices

The month was starting when the AFA Group and Socicorreia announced the acquisition of two buildings in the centre of Lisbon. The AFA Group bought an asset on Av. 5 de Outubro, with around 8,000m2 of gross area, spread over 11 storeys, while the Socicorreia group acquired a building on Av. Viscount of Valmor. The business represents an investment of around 27 million euros. Both properties are currently used for office, retail and parking spaces; however they will be converted to residential use.

At the end of the week, it became public that the US fund Cerberus put up for sale the Fidelidade headquarters building, located in Largo do Calhariz, in Lisbon. At the end of 2019, Fidelidade sold the Arya portfolio to the US fund, which included the insurance company’s headquarters building.Now, after three years, Cerberus is putting up the property for sale. The building houses the headquarters of Fidelidade and also has Caixa Geral de Depósitos as a lessee.

In the middle of the month, Incus Capital announced the investment of 7 million in the D.M2 building in Porto. The Spanish company will commence with the rehabilitation project of one of the most emblematic buildings in Porto, known in the city as “Edifício Tranquilidade”. The property, whose works should be completed by the end of the year, was so nicknamed for displaying the colours and symbology of its main tenant.

Logistics

Mistolin announced its new logistics centre, with an investment of 5 million euros. The new centre will emerge in the industrial zone of Vagos, in Aveiro, adjacent to the company’s building. With an operating date scheduled for 2023 or 2024, the project aims to create an interconnection among all the commercial systems of the group, therefore serving the entire MSTN group.

Retail

At the beginning of the month, Prime Portugal acquired the CascaisVilla Shopping Centre, an asset that was sold by Bain Capital Credit. The commercial project, which is located at the entrance of Cascais, is currently in operation, however, the Municipal Master Plan (PDM) of the municipality already foresees its demolition and the birth of a new mixed-use project, with predominance for residential and commercial use.

Meanwhile, ALDI Portugal announced the opening of a new store in Baixa da Banheira, in the municipality of Moita. The food retailer opened its 114th store in the country, this being the second store in the municipality of Moita and the 16th in the district of Setúbal. The new space has a total area of ​​1,548m2, totalling a sales area of ​​1,000m2.

Casa Peixoto announced an investment of 10 million euros in a store in Lisbon. The company, which operates in ​​trade and distribution of building materials and DIY, home & garden, has started the construction of its new space located in Parque das Nações, near Gare do Oriente.

Soon after, Lidl announced the reopening of four stores in an investment of 17 million euros. Located in Macedo de Cavaleiros, Ermesinde, Almada and Cascais, they have sales areas ranging from 1,200m2 to 1,440m2.

In the middle of the month, Ten Brinke’s first ALDI supermarket in Portugal opened in Viana do Castelo. The new commercial space has 1,800m2 of surface, of which 1,200m2 are for sale to the public. Ten Brinke is developing a project in Viana do Castelo that covers a total of 14,000m2 of commercial, residential and service areas.

At the end of the month, the announcement was made that the SIGI of Sonae Sierra had acquired a set of assets worth 26.2 million euros. Olimpo Real Estate Portugal (ORES), the first Real Estate Investment and Management Society (SIGI) to be created in the country, announced the purchase of the assets. The acquired portfolio includes three hypermarkets, located in Guarda, Cantanhede and Ponte de Lima, and has a total gross area of ​​14,563m2, subject to long-term lease agreements with Continente.

Hotels

In early November, the new five-star Hyatt Regency Lisboa hotel was inaugurated. The arrival in the Portuguese capital city of the worldwide Hyatt chain took place through United Investments Portugale Fibeira, under the management of UIP Hospitality Management Company. As a result of an investment of 70 million euros, the Hyat Regency Lisboa is located in Belém.

Meanwhile, the Elegant Group announced the sale of the Hotel Martinhal Cascais to Onyria, belonging to the Pinto Coelho family. The previous owners of the Hotel Martinhal Cascais, the Pinto Coelho family, have been strengthening their close relationship with Roman and Chitra Stern, founders of the Elegant Group, in order to buy and integrate the hotel unit back into their remarkable business portfolio in Quinta of the Navy. The investment value of the operation has not been disclosed.

In the middle of the month, Hyatt also announced the launch of a new resort in Madeira. The Dreams Madeira Resort Spa & Marina project is scheduled to open in 2024 after the renovation works and will signal the entry into the new global portfolio of luxury resort brands – the Inclusive Collection. The resort, situated in a privileged location on the island of Porto Santo, includes 366 luxury rooms, as well as standard rooms, luxury villas, a beach and a private marina.

Meanwhile, Mercan Properties announced an investment of 108 million euros in the construction of two new hotels in the marina of Lagos. Mercan Properties signed an agreement with Hilton for the design of the new units, Lagos Marina Hotel, Curio Collection by Hilton and Hilton Garden Inn Lagos. The opening is scheduled for the summer of 2024 and both hotels comprehend a gross construction area of ​​23,000m2.