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Retail Boosts Non-Residential Real Estate Investments

19 July 2017

Roughly 1200 non-residential real estate projects, with a total area of 1.7 million m2, were in the process of licensing in continental Portugal up to the end of last year. Compared to 2015, the number of planned projects grew 37%, driven both by the increase in new developments (rising from 562 to 688 projects) and by regeneration projects (from 279 to 468).

The data were revealed by Confidencial Imobiliário (Ci), after an analysis of energy pre-certificates issued by Adene in 2016, which allowed the company to research intended real estate development investments.

The retail sector was responsible for greatest number of planned projects (474, or 41% of the national total), followed by social facilities, accounting for 31% of the total, with 376 new buildings. Tourism and office space accounted for 13% and 12%, respectively, with 149 new tourist developments and 137 new office buildings in planning.

Social facilities and retail spaces also led in terms of the total area under development, with 620,000 m2 and 593,000 m2 in planning, respectively. Tourism projects in 2016 amounted to 284,000 m2, and office space accounted for 173,300 m2.

Buildings with less than 1000 m2 dominate planned investments in Portugal (65% of the total area), but projects having between 1000 and 5000 m2 are also significant, accounting for 31% of the portfolio. There are additionally several large-scale projects, such as a health development (social facility) in Lisbon projected to occupy around 60,000 m2, as well as two other social facilities in Braga and Lisbon, each expected to occupy more than 20,000 m2.

In retail, the two largest planned units in 2016 are in Loulé, in the south of the country, with areas of 72,500 m2 and 34,700 m2. Two office space projects with more than 30,000 m2 also stand out, one in Lisbon (around Avenidas Novas) and another in Oeiras. In the tourism sector, the largest projects were in Sintra and Lisbon, with 25,500 m2 and 19,100 m2, respectively.

Original Story: Público – Imobiliário

Translation: Richard Turner