Foreign investment in commercial area already exceeds 100 million euros

04 Dec 2019

Investment in commercial real estate within the Porto Metropolitan Area is over 150 million euros in the first nine months of this year alone. The city of Porto concentrates 89% of this investment.

Based on a report by real estate consultant Cushman & Wakefield, which recently opened premises in Porto, it is concluded that 74% of the amount invested comes from foreign capital, which corresponds to about 112 million euros.

The study, released this week, points out that "the attractiveness of the Region continues to grow", but the expansion margin falls short of what is desired because there is still a shortage of supply in the market, especially of large spaces for the installation of new companies.

The report's conclusions also highlight Porto's preponderance in this equation, "well above the average weight of 53% between 2015 and 2019", underlines the Jornal de Negócios.

Between January and September 2019, the office sector captured the largest share of the investment: 34%, above 50 million euros, followed by the hotel industry, with 32% of the invested capital.

Bet on offices with areas exceeding 110 thousand square meters

Cushman indicates that the average absorption volume in the AMP office sector was between 35,000 and 45,000 square meters, but due to the shortage of supply, occupancy volume averaged 26,000 square meters in the first nine months of 2019.

For this reason, new constructions are already being designed to overcome this difficulty, which has often blocked the advance of more investment for the city. By 2022, nine projects are estimated to be concluded, with a total area of over 110 thousand square meters, of which 72% is already under construction.