The real estate market in Porto experienced a positive evolution in investment in commercial real estate and in the occupation of offices during the pandemic, reports a JLL study released this Tuesday. The consultant highlights twice the investment in commercial real estate in the first nine months of 2020 than in 2019 as a sign of the resilience of the Porto market, as well as other increases in the sector's indicators.
The 400 million euros invested so far in commercial real estate in 2020 represents approximately one fifth of the national total for this type of property in the current year, and also means a clear growth in relation to the 200 million euros invested in the same period last year. .
Despite the strong contribution of large-scale operations such as the sale of a portfolio of Sonae Sierra or Trindade Domus shopping centers, this result is still the result of asset transactions inserted in multi-location portfolios, which include offices, supermarkets and shopping centers .
The office market has also expanded since the beginning of 2020, growing 26% compared to the same period last year, which is mainly explained by the conclusion of several projects, including some large-scale projects, which allowed the supply to be better adapted to the existing demand in the city.
On the other hand, the residential market experienced a drop in the volume of properties traded, which fell 9%, but the value stabilized, growing by 2%. In terms of prices, JLL notes that these have remained relatively stable.
“The Porto market reached a pandemic due to a robust growth cycle and with enormous potential yet to be implemented, which explains why it is not only resisting but even evolving positively, even in this adverse context”, explains Pedro Lourenço, director general manager of JLL.
On the negative side, the promotion, retail and hospitality sectors were the most affected by the pandemic context, with the latter two being severely affected by the lack of tourism in the city. In particular, in retail, there are some mismatches in expectations between owners and traders, since the latter want spaces below market value, while the former do not show intentions to lower rents.