retail-shopping-centers Market News: Spanish Real Estate Intelligence

Redevelopment of Lisbon's Rossio Square to Proceed
7 July 2020 The architectural offices of Contacto Atlântico, which is helmed by Andre Caiado, in partnership with a team of historians, archaeologists and engineers, will undertake the redevelopment of a well-known city block in central Lisbon. The project, which has been dubbed the Rossio Pombalino, after the square at which it is located and the 18th-century Portuguese architectural style, intends to preserve some of the city’s long-standing institutions. The development aims to revitalise the area, attracting visitors to a traditional area of the city.  The iconic Pérola do Rossio tea and coffee shop will be maintained, and a large mural of hand-painted azulejo will recreate the 1970s era esplanade.  A large clothing store will anchor the new development. Original Story: Diário Imobiliário Translation/Summary: Richard D. Turner
Study by EY Foresees 2-Year Impact on Real Estate Sector by Covid-19
23 June 2020 A survey carried out last month by the consultancy EY, predicts that the economic damage wreaked by Covid-19 will last 24 months. While market commentators and pundits have been speculating about the impact of the coronavirus, EY’s Real Estate team carried out an extensive survey of 300 real estate professionals from different sectors of the real estate industry in Portugal. The general conclusion has been that the government measures to protect the economy and prevent a future crisis will largely determine how the effects of the current pandemic play out in the near-to-medium term. Most of the study’s respondents believe that while confidence is sure to suffer a slight hit, investment plans are likely to undergo a temporary suspension. Half of the respondents expect a crisis in the sector, but think that it will last no longer than 12 months. Those same respondents believe that the industry will regain the highs of 2019 will within two years. Demand in the residential segment is forecast to fall by 40%, while prices should decrease by 20% over the next six months., with an eventual rebound over the next 24 months.  The luxury segment, primarily sustained by foreign investors, is likely to escape much of the expected impact. The demand for offices is also expected to drop by 20%, again with a recovery over the next 24 months. Prices, however, will decrease by a lower amount, 10%. The pandemic’s effect on the retail segment, though, is likely to be more severe. The logistics and industrial segments are forecast to undergo a period of adjustment to the new reality. The pandemic revealed weaknesses in supply chains which have strengthened the existing movement to focus on last-mile solutions. The logistics sector, in particular, is likely to benefit from an increased focus on e-commerce and faltering sales at retail shops. Possibly one of the worst-hit sectors will be that of tourist accommodations. Demand is likely to fall by 40%, with a 30% decrease in asset values, a 50% decrease in RevPAR and a deeper downturn over the next 24 months. Original Story: Jornal Económico - João Moura, Head of Real Estate, Hospitality, Construction & Infrastructure EY, Transaction Advisory Services Translation/Summary: Richard D. Turner  
Dubai in Madeira Focuses on Housing
9 June 2020 Socicorreia and AFA, two Portuguese developers, announced that they have dropped plans for a hotel in their new mega-project in Funchal. The Varino development, also known as Dubai in Madeira, will now consist of housing and commerce, including a total of 420 flats. Work on the site, located in Estrada Monumental, near the Forum Madeira shopping centre and north of Praia Formosa, is set to begin later this year. The developers plan to invest roughly €200,000 in the 35,000-m2 plot of land, 60% of which will remain the green spaces, with a construction area of 65,000 m2 above ground. The Varino Development will have approximately 420 one-to-four apartments. Prices are forecast to run between 2,500 to 3,000 euros per square meter and overseas buyers expected to absorb more than half of the flats. Original Story: Jornal de Negócios - Rui Neves Photo: Hélder Santos Translation/Summary: Richard D. Turner