The Portuguese Real Estate Market in April
As the second quarter of the year gets underway, April proved to be a very robust month in terms of transactions and investments. Mainly in the housing and hotel segments, which continue to show their dynamism in recent months.
We also highlight that Aura REE Portugal announced that it is now a member of IES (International Ethics Standards) as a Business Supporter of the organisation. IES is an international organisation / coalition of Ethical Standards, which aims to maintain and promote a universal set of ethical principles for real estate and related professions. Adherence to IES is recognition of Aura REE Portugal as a company with high integrity.
As the month gets underway, Taga Urbanic has announced a €60 million investment in the Sal D’Ouro residential building. The development is located near the Foz of Vila Nova de Gaia and consists of 31 flats.
Immediately afterwards it was made public that Benfica, in Lisbon, will receive a housing complex with 266 homes in an investment of around 50 million euros. It is on the former premises of the Laboratório Nacional de Investigação Veterinária (National Veterinary Research Laboratory) that buildings will be constructed under a controlled cost housing regime, for housing but also for commerce and services. The tender for the new affordable housing complex that will be built at Quinta da Baldaya was launched by the Institute of Housing and Urban Rehabilitation – IHRU.
Meanwhile, a new residential project “As Camélias” is to be built in Porto. The development is located in a residential area par excellence, close to the well-known Boavista/Foco residential park. The private luxury condominium is situated on a 5,350 m2 plot of land, has a total of 20 single-family homes, distributed over four modules, and is developed around the original building, which was remodelled and transformed into three homes. The investment value was not disclosed.
Also in the north, Predibisa is marketing the residential development SPLENDOURO Marina Houses. The project, whose investment is estimated at 15 million euros, is located near the Afurada area in Vila Nova de Gaia and was developed by architect Miguel Nogueira, from the NN Arquitetura team, for Sharp Developers, which is the promoter of the investment. The SPLENDOURO, which has 11 houses, of typology T4 – Garden Houses and T5 – Panoramic Houses, is in the marketing phase, with an estimated conclusion of the work in May 2024.
With April halfway through, Dynasty Homes announced the investment of 30 million euros in the Herdade do Meio development. Dynasty Homes will make this investment in its latest real estate project, located in the municipality of Seixal, which is already under construction. The residential development comprises 70 houses and is set in an 11-hectare plot, with green areas, children’s playgrounds and paddle tennis courts.
Finally, Belas Clube Campo announced an investment of 18 million euros in the Orion project. The development is designed by the architect Eduardo Capinha Lopes, and has 34 flats, of typologies T1 to T5, with values from 360 thousand euros, distributed over 3 floors. It has ample gardens, garage and storage room, and also a commercial and services area. Currently, the project is in the launch phase, with exclusive conditions, and will be completed by the end of 2025.
Mid-month saw the announcement of the marketing of República 41. The marketing of the building, which is 100% occupied, took place during the modernisation process of the space. During the last 18 months, the building has undergone refurbishment works and has a total area of over 1700 m2, distributed over nine floors. The building, located in one of Lisbon’s main avenues, will also have a common terrace on the first floor. The investment value of the operation was not disclosed.
At the end of April, it became public that EastBanc Portugal’s most recent rehabilitation project, Alegria One, reached a 100% occupancy rate. The building, which has 2.800 m2 of construction area, 7 floors and about 2.200 m2 of commercial area, is designed by the architect Eduardo Souto Moura. It is located in Lisbon, at number 85 of Avenida da Liberdade and number 1 of Praça da Alegria, and is fully adapted to the new market trends. The office floors of Alegria One are currently occupied by companies such as Dior, Dentsply Sirona, Faber Ventures and Portugal Homes.
Earlier this month, it came to light that the Rainha Green Logistics Park logistics complex was handed over by the Aquila Capital group. The logistics complex was formally delivered and represents the first investment in Portugal of Aquila Capital Group’s Green Logistics brand related to logistics. This logistics complex, with two buildings, and the associated urbanisation works, represent an investment of around 100 million euros. The construction works of the logistics complex, located in Azambuja, were carried out by GSE.
In this segment, Aldi Portugal and Mercadona were the food retailers with the most announcements in April. Right at the beginning, Mercadona announced that it will open 10 new shops in Portugal by 2023. The supermarket company thus continues with its expansion plan. Mercadona will double its investment to 280 million euros by 2023, which is earmarked for the construction of the future Logistics Block in Almeirim and for the opening of new shops.
Meanwhile, ALDI is opening its first shop in Montijo, and the construction project for the new space includes the widening of one of the main avenues in the municipality. Currently, the retailer has 17 shops in the district of Setúbal, and arrived in Montijo, this being the 128th shop in the country. The new shop has a total sales area of 1,040 m2.
Finally, Aldi opens its first shop in Guifões in a 4 million euro investment, this is the fourth Aldi shop in the municipality of Matosinhos. The space has a total sales area of 1,000 m2, and its construction project made it possible to improve the urban environment around the shop, redevelop part of Avenida Doutor Salgado Zenha, where it is located, and build a roundabout for greater customer convenience.
In this segment, Smart Studios announced the launch of two new student residences in Lumiar, Lisbon. Smart Studios will start the construction of the new student residences. Engexpor is in charge of the construction management. The buildings that will host the residences will provide 635 lodgings and will be built on plots 2 and 12 of the most recent development in the Alta de Lisboa urbanization.
Right at the beginning of April, the new Arts Hotel Porto, Tapestry Collection by Hilton, opened its doors in the historic centre of Porto, in an investment of 15.4 million euros. The opening of this hotel unit is the result of the rehabilitation of a historic and vacant building. The new space has with 2.300 m2, and 53 rooms with high standards of elegance and comfort.
The month was already halfway through when the Renaissance Porto Lapa Hotels opened. The new hotel is the result of a 56 million euro investment by Mercan Properties. Renaissance Hotels, a brand that is part of Marriot Bonvoy’s portfolio, debuts its presence in Portugal by opening the Renaissance Porto Lapa Hotel, located in the historic district of Lapa, in Porto.
Finally, Hilton announces an investment of 60 million euros foreseeing the opening of four hotels still this year. The Hilton chain plans to open four new spaces in Portugal, in 2023 and to double its hotel network in the next three years, by opening nine hotels spread across the Portuguese territory. This also reflects the reinforcement of the current teams of the hotel chain’s eight hotels. This year, and after the opening of the Tapestry Collection by Hilton, in Porto, the result of an investment of 15.4 million euros, there are plans to open the Hilton Garden Inn Évora (investment of 21 million euros), the Legacy Hotel Cascais, Curio Collection by Hilton and DoubleTree by Hilton Lagoa Azores, in a total investment of around 60 million euros.