The future of tourism in Portugal after COVID-19
Article Jornal de Negócios | 31 December 2020
JLL: Real estate investment falls in 2020 but is expected to be the third best year ever
Real estate investment in 2020 is expected to exceed 26 billion euros, according to JLL estimates. Values representing a 20% drop compared to the 2019 record.
JLL estimates that by 2020 2.6 billion euros will have been invested in commercial real estate and another 24 billion euros in housing purchases in Portugal, which should be the third best year for this market.
The real estate firm considers that this was “a very resilient sector in the context of the pandemic crisis”, pointing to price and income stability in most segments, as well as a high volume of transactions.
“The year started at full speed in the different market segments and, had it not been for the proliferation of covid-19, 2020 would have been the best year ever for this sector, breaking new records”, says JLL general director, Pedro Lancastre . “After a 2nd quarter of panic in a context of absolute ignorance, the 3rd quarter was bringing normality to the sector, with transactions taking place, and the 4th quarter was already marked by greater confidence and the return of many investors to assets, also because the vaccine stopped being a mirage to become a reality “, he adds.
The head of Capital Markets at JLL, Fernando Ferreira, points out that the local capital, coming from open real estate investment funds and pension funds, “was much more active” and points out that the offices were one of the most desirable assets “. The retail segment “underwent greater scrutiny” by investors, due to the impact of the pandemic on the free movement of consumers, which caused a drop in the performance of many assets in this segment, especially with regard to shopping centers. statement sent to newsrooms.
With regard to the residential market and also to the industry and logistics market, there is “strong demand”, which is accompanied by a “lack of product”.
In 2019, 3.240 billion euros were traded in commercial real estate and 25.1 billion euros in residential, which means that in 2020 a drop of about 20% is expected compared to the previous year. In 2018, 3.356 billion euros were traded in commercial real estate and 24.1 billion euros in residential real estate.
Portugal stands out in 2021
The same real estate company is optimistic about the performance of the Portuguese market next year, stating that the country keeps “its attractions intact”, after leaving “well positioned” in the pandemic compared to other European counterparts.
Even so, JLL takes the opportunity to point out some growth brakes that already inhabited this market before the pandemic invaded it. The real estate firm argues that it is necessary to resolve the delays in the licensing processes and review the strategy for Gold Visas, “which can again be an important catalyst for the country’s economic recovery”.
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Convento do Carmo
We are so proud to introduce our next creation in Braga.
Article Expresso Economy | 10 October 2020
Israeli group Fortera invests € 80 million in Gaia
Project includes a hotel, a congress center and apartments
“The Skyline project is unique and brings together an ecosystem of commerce, services, residential, hospitality and leisure in two buildings”, says Elad Dror, executive director and one of the founders of the Fortera group, of Israeli capital.
The “jewel of the project is a congress and exhibition center that will make it possible to transform Gaia into a central city with facilities for major events and exhibitions”, adds Elad Dror.
The Skyline, which will be served by 600 parking spaces, was designed for Rua General Torres, at the rear of the City Hall of Gaia, on a 26 thousand square meter plot, with the possibility of building 45 thousand square meters above the ground. The project will have two construction phases: a 260-room hotel, which will also have apartments, in a 20-story building. A second phase will be “a congress center for two thousand people, served by a square and shops, to enhance leisure activity”. “In total, there will be 16 thousand square meters of offices and 10 thousand square meters for the residential and commercial area”, adds Elad Dror.
SOUTO DE MOURA ON THE EQUATION
The architecture of the congress center and the hotel must be designed by Souto de Moura, but Elad Dror does not take the choice. “He is one of the most important architects in the country, we are working on the agreement and we will announce the decision soon,” he says. As a guarantee, only that “it will be an emblematic project for Gaia and also for Porto and will bring about a great change, it will create many jobs, placing the region on the map of major world exhibitions and congresses”.
The € 80 million investment “will be supported by equity”, guarantees the administrator of Fortera, which has other investments in the North of the country. With the sale of the square meter between € 3,000 and € 5,000, Fortera expects to deliver 60 more apartments by the end of the year, divided between Porto, Gaia and Espinho. Some of these dwellings “resulted from changes in hotel projects, which were converted into residential units, with greater importance for the external area, with the inclusion of terraces, which are now essential” due to the pandemic.
“We concluded, between 2016 and 2019, nine projects, with a total investment of approximately € 21 million, and we invested another € 45 million in acquisitions during 2019. The total investment we currently have in the pipeline is more than € 250 million”, says . Elad Dror does not fail to criticize the restrictions that are preparing for the gold visa regime. “It is exactly the opposite of what should be done and it will be a disaster for the economy”, he anticipates.
The administrator guarantees that the Fortera group “is ‘unleveraged’, with little bank exposure”, so he predicts that the construction of the Skyline will start as early as 2021, in a work that “will take approximately two to three years to finish”.
DIFFICULTIES UNTIL SEPTEMBER 2021
For the next year, the administrator recognizes that “the first three quarters will be difficult”, but assumes that the attraction of foreign investment can help to move the economy, create business and jobs. “The fundamentals have not changed: the climate, the people, the gastronomy and the security”, he says. For this reason, he guarantees, the group has underway “the preparation of two real estate funds to continue investing in the residential market, street commerce and logistics”.
Among the investments is the transformation of Convento do Carmo, in Braga, which “will be converted into a residential building”, and in Gaia awaits the licensing of three towers to “start a residential project”, he concludes.