All Market News: Portuguese Real Estate Intelligence

With Carnival just around the corner, the past week proved itself dynamic in terms of announcements and investments, mainly in the residential, retail and logistics segments. Of particular note was the Government's announcement at the end of the week, of the new measures to tackle the housing crisis.

On Monday, it became public that Heed, Amro and IPIM closed a €7.5 million loan with Alteralia Real Estate Debt, for the development of a student residence project in Porto, with 151 beds. The inauguration of the project is scheduled for January 2024.

The following day, the retailer Aldi announced that it is entering 2023 with the opening of two new stores, in Ferreiras (Albufeira) and Águas Santas (Maia). The construction of the new spaces enabled for the requalification of the industrial patrimony and for the improvement of commercial accesses.

Meanwhile, the Government will invest around 65 million euros to transform a former GNR Barracks, in Largo do Cabeço da Bola, in Lisbon, into housing, through the Fundo Nacional de Reabilitação do Edificado – FNRE (National Fund for the Rehabilitation of Buildings). The public building has more than 22,000m² and plans are being made for the construction of dwellings, mainly flats, which will mostly be available under the Affordable Lease Programme.

With the week ending, the Government has gone forward with new measures to combat the housing crisis, with the approval of the Mais Habitação. The new measures aim at increasing the housing supply, making licensing simpler, creating a larger rental market, fighting speculation and supporting families.

Finally, Mercadona has announced the investment of 225 million euros in Almeirim, Santarém, in what will be the largest logistics block in the Iberian Peninsula. The logistics asset will be built on a plot of land of 440,000m², acquired by Mercadona, and will have a construction area of 120,000m².

In this second week of the month, the real estate market has been dynamic, along with the presentation of balance sheets and results of several companies. On the other hand, several events, meetings and conferences took place throughout the week, which did not stop the activity. Even with a smaller number of announcements to highlight, the operations that emerged reveal the importance and robustness of the sector.

With the week starting, it became public that the Gago Coutinho Building 26 in Lisbon has been sold. The building was built in the late 1970s, and in 2015/2016 it underwent significant rehabilitation. It totals approximately 8,200m² of gross building area, spread over 9 floors. It also has 55 parking spaces. The investment opportunity was presented to Fundo CA Património Crescente (Fundo de Investimento Imobiliário Aberto, managed by Square Asset Management), which ended up acquiring the building.

Soon after, there was the announcement that the largest “green” logistics centre on the Iberian Peninsula will be born in Portugal. Parque Logístico Grândola - Euro Atlantic Logistics Park (GLPEA), will be located in Grândola, 150km from the Spanish border. Qantara Capital allocated an investment of several hundred million euros for the development of the new logistics centre, which will occupy an area of 130 hectares and will have a total of 670,000m² of construction area for logistics, industry and services, 300,000m² for adjoining infrastructures, and 330,000m² for green areas.

Finally, Lidl has announced an investment of 11 million euros in the opening of a new store in Vila Nova de Famalicão. The retailer thus continues its investment in Portugal, with the opening of its 89th store in the North zone, in Vila Nova de Famalicão. This is the fourth store in the municipality, which focuses on the development of the local economy. The new space has an area of 1,400m².