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.
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.
Since 2022, 9 office buildings have been completed, of which only a quarter are unoccupied. The demand for quality spaces will likely be in line with the projected supply over the next 3 years, which is currently sitting at 131 200m2. 97 100m2 of office real estate is now under construction, with 40 percent occupancy already being secured.
Prices have been steady in central Porto since 2018, but many areas are seeing an increase in prices due to the simple matter of demand outweighing supply.
Cushman & Wakefield showed that the increase in demand for retail space demonstrates the recovery in the Metropolitan Area of Porto since the decrease recorded during the pandemic. 140 new units were opened in 2022, up 40 percent from the previous year. 23 percent of the new retail space supply is concentrated in the Baixa area of the city.
Industrial & Logistics
In the first quarter of 2023 the volume of transactions recorded in the industrial and logistics sector was already 2 percent above the first half of 2022, with largest transaction being to Olicargo's investment of the Centro Logístico de Ribeirão (Vila Nova de Famalicão).
The Industrial Area of Ermida is another of Porto´s most significant current developments. Medway is also developing the Lousado Terminal (Vila Nova de Famalicão), and construction will begin on other projects, including Panattoni Park (Valongo), Valongo Business Park and Gaia Park.
€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.