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The State of the Portugal Real Estate Market in September

In the month that wraps up the summer and the third quarter of the year, investment was robust, mainly in the residential sector. Housing saw the lion’s share of activity throughout the month of September.

In parallel with August, which witnessed significant transactions at the beginning of September, with a clear focus on tourism, the Quinta do Lago Sul Golf Course reopened after a 7-million-euro investment. The largest luxury resort in the Algarve, which has been at the forefront of elite golf destinations, has finally reopened to the public after a thorough modernisation.

Near the end of September, Fercopor announced that it would launch nine projects in a 190-million-euro investment. The luxury real estate company expects to complete the projects by the end of 2022. Plans include more than 200 luxury homes and a 17-storey office building, focusing on Avenida da Boavista (Porto), Vila do Conde and Lisbon.  Two projects are under construction, and another seven will begin marketing between this year and next.

Residential

It was just at the beginning of the month when Mexto announced that it would invest €20 million in the Portuguese market by the end of the year. The Swiss real estate developer intends to strengthen its presence in Portugal by investing in second-home projects on the coast south of the capital. Mexto, a specialist in luxury rehabilitation, continues to bet heavily on the Portuguese residential market and plans to invest another €20 million next year.

Rio Capital also announced an investment of 8 million euros in the interior of the country. The developer is betting on projects outside Lisbon and Porto and recently announced a new real estate investment. Details of the project in Portalegre will be announced in the coming months. Relying on the agility of the local city council for the necessary approvals, Rio Capital expects to start construction and pre-sales early next year, with completion expected by mid-2023.

Meanwhile, INVARIA announced that it had boosted its housing stock by acquiring a PIP-approved plot of land in Lisbon. The deal will allow the Spanish group to bring another 220 flats to the residential market. INVARIA has a developed plot located in Ameixoeira for residential use for sale.  The project also has the approval to convert one of the plots into a student residence. The project, with no revealed values, will consist of 6 distinct plots.

With the end of September in sight, the real estate investment fund Maya Capital announced its entry in Portugal via a 65-million-euro investment in residential assets. This is the fund’s Iberian platform’s first deal. The assets include seven buildings located in prime areas of Lisbon, which the company plans to redevelop. The mainly residential portfolio is located in four parishes of Lisbon: Misericórdia, Santo António, Santa Maria Maior and Avenidas Novas.

Retirement Homes

During the second half of the month, Thor Spain announced that it had begun operations in Portugal, with plans to develop three retirement homes in an investment of more than 30 million euros. The residences, which have 120 beds each, will be located in Setúbal, Guimarães and Algarve. Each project involves an investment of between 10 million and 14 million euros. Thor had previously announced its intention to expand its operations to the Portuguese market.

Logistics

CORUM announced its acquisition of Nobre’s logistics centre in Rio Maior for an undisclosed amount. The asset has around 9,500 square metres and is the centre of operations for the storage, logistics and distribution of Nobre’s production for Portugal and international markets.

Hotels

On the last day of the month, Mercan Properties announced the inauguration of the “Casa das Lérias” Hotel after an investment of 7 million euros. Located at the beginning of one of the main thoroughfares in the centre of Amarante, the new hotel offers comfort and elegance on the banks of the river Tâmega. The avant-garde building provides an ample exterior space and a harmonious and relaxed interior, ideal for those looking for a service with modern amenities. Casa das Lérias has 23 rooms, including Deluxe, Duplex, Single and Superior.

Alternative Assets

The pan-Mediterranean real estate development and investment management company, OptylonKrea, has launched a €150 million fund. OptylonKrea was named General Partner of the venture capital firm Stag Fund Management to launch the new fund. The Prima Europe Fund is aimed at investors seeking to benefit from the Residence Permit for Investment Activity (ARI) regime, the so-called ‘Gold Visas’, by investing in Prima Collection branded residences.