Increase in investment activity in Porto

• 12 June, 23

An article published by Diário Imobiliário, showed Andreia Almeida, associate, and director of research and insight at Cushman & Wakefield, stated “During the time period analysed some historical highs were reached, demonstrating the region’s increased attractiveness, including among international companies”

The demand in the Porto region has recovered gradually since the drop seen during the pandemic, and in 2022 58 500m2 of transactions were made, up 3 percent in comparison to the previous year.

The first trimester of 2023 has likewise seen a 22 percent increase in comparison to the same time period during 2022, with the biggest deals closed since last year being several pre-lets and co-working spaces.

Hospitality

Similarly to trends seen at a national level, the city of Porto demonstrated a recovery in activity in 2022, with the number of overnight stays in tourist accommodation doubling – reaching values above those recorded in 2019.

Since 2022, the city has seen an additional 740 rooms introduced and over the next 3 years, 5 new hotels with 460 rooms will open, half of which will be 5-star establishments.

Investment

€267 million have been invested in commercial real estate since 2022. Interestingly, compared with other areas of Portugal, there are a higher number of national investors financing projects in Porto. Since last year, national investors have accounted for 38 percent of the total transaction volume.

Despite growing uncertainty across the global economy, prime yields registered increases across several sectors in Porto in 2022, as well as during the first quarter of 2023. This level of interest and investment in Porto looks highly promising for the city, and the north of Portugal as a whole.

Cre: Portugalnews