The State of the Portuguese Real Estate Market in June
The month that held the arrival of summer and the month of the Popular Saints was marked by large investments in the real estate market. Even during several national and municipal holidays, with festivities all over Portugal, the market didn’t stop for a rest, apparently showing itself to be calm in counter-cycle with the voracious investments that appeared throughout June. In general, and as was evident last May, there were transactions in some of the sector’s segments, with the main emphasis on housing and hotels. Housing The month was already halfway through when there was an announcement that another 70 residential units were to be built in Lisbon, financed by the RRP in an investment of more than 6.2 million euros. The first stone for the construction of 70 homes in Bairro Padre Cruz in Lisbon has already been laid. Under the Recovery and Resilience Plan, the financing contract was signed, which will allow the 100% non-refundable financing of this investment of more than 6.2 million euros under the Lisbon Municipality Local Housing Strategy. Meanwhile, Fercopor announced a new luxury housing project in a 9-million-euro investment. Enlight will be built in Porto, on Avenida da Boavista, the most recent development created by the luxury real estate company looking to boost the housing supply on that avenue. The project is located next to the former Dallas Shopping Centre, on a plot of 2,636 m2, which has so far remained unoccupied. The new development will make available 20 flats, distributed over seven floors. The one-to-four-bedroom homes will have interior areas of up to 280.5 m2 and exterior areas of up to 95 m2, including balconies, gardens and patios. In the middle of the month, the Oeiras Town Hall announced that it would sign financing contracts with the Housing and Urban Rehabilitation Institute (IHRU) for the construction, by 2024, of 92 houses for rent, in a total investment of around 19.2 million euros. The project also has a financial contribution from the Recovery and Resilience Plan (PRR) estimated at 15.8 million euros. Meanwhile, Traçado Regulador announced that it is developing a new project for the construction of a luxury residential building in Oeiras Golf & Residence. The 22 two-to-four-bedroom flats will have areas between 100m2 and 200m2. Investment values were not disclosed. The following day, the CVM - Construções Vila Maior group revealed that it would invest 140 million euros, over the next year and a half, in building 15 buildings in the Greater Porto area, corresponding to 825 units, of which 425 are already underway. The remaining 400 will start by the end of the 1st quarter of 2023. The Group also announced its entry into the industrial rental area, where it will invest 15 million euros by the end of 2023, in Santa Maria da Feira - Parque Empresarial A32, with 25,000m2 - it intends to continue to buy and invest in this sector, by acquiring new assets. Retirement Homes At the end of June, it became public that the Hospital Particular de Viana do Castelo is investing 8 million euros in a new retirement home. The project includes the construction of a retirement hotel with 40 single rooms and 20 double rooms, with a total occupancy of 80 guests, and a clinical unit with physiotherapy, gastroenterology, and outpatient services with all specialities. From the investment of this new unit that will be installed in Avenida Capitão Gaspar de Castro, one of the city’s main arteries, 1.255 million euros correspond to the value of the land acquisition, with the consequent creation of about 60 jobs. Hotels At the beginning of the month, the W Algarve luxury resort opened its doors following an investment of around 300 million euros. The W Algarve is the first luxury resort of the W brand in Portugal, located in Albufeira, at Praia da Galé. W Hotels Worldwide has announced opening the W Algarve, which is part of the portfolio of Marriott Bonvoy, which in turn owns more than 30 hotel brands. The company’s latest hotel joining the W Escapes family, is located atop the cliffs in the Praia da Galé area. It features 134 west-facing rooms and suites and 83 W-branded residences. In the same week came the announcement of the new IMMERSO Hotel that opened its doors in Ericeira after a €6-million-investment by Inspire Capital. The 5-star hotel will be the first in the region, offering 37 rooms, a spa, pool, bar and two gastronomic spaces. It is located in a valley and combines four different accommodation areas, all embraced by the green surroundings. The project’s primary focus is its contact with nature. The following week, the Fladgate group sold a hotel in Porto to Gaw Capital. Owner of the Intercontinental Palácio das Cardosas, Gaw Capital is the new owner of the oldest 5-star hotel in Porto, the Infante de Sagres hotel. The Fladgate Partnership sold the historic hotel in an operation whose value was not disclosed. The new hotel unit, which has not yet been named, will have between 85 and 90 rooms and is expected to be operational within two years. As the month drew to a close, Mercan Properties announced a €16.8 million investment in a Holiday Inn Express in Évora, scheduled to open in the summer of 2023. This is Mercan Properties’ second project in the city that holds UNESCO World Heritage status, following the Hilton Garden Inn Évora, whose first stone was laid in 2021. The development, which will create around 100 jobs, 70 of these during construction, and a further 30 permanent jobs to be created once the hotel opens, results from a partnership with IHG Hotels & Resorts (IHG). Alternative Assets Also in early June, Home Tailors Real Estate announced the marketing of a Wine Estate for €8 million. The real estate agency was responsible for the sale of Herdade das Fontes Bárbaras, located on a typical Alentejo hill, in the municipality of Castro Verde. The estate has a wine-growing component, along with rural tourism and wine tourism. The project is inserted in the estate’s 162 hectares, where the predominant culture is the vineyard. With the month coming to an end, the Casais Group announced the investment of €11 million in a hybrid construction complex next to the University of Minho’s Pole. It is in Guimarães that the hybrid construction complex will be born, including a B&B Hotel with 95 rooms, 44 studios for rent and a commercial space. Designed by the architect Mário Fernandes, the hybrid construction complex will be inaugurated still this year. According to the Casais Group, this is the first building of hybrid construction in the Iberian Peninsula, using engineered wood and one-third of the concrete of a traditional building.