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Foreign investment in Porto and the North Region is higher than the rest of the country

Foreign investment in Porto and the North Region is higher than the rest of the country
14 Dec 2020

Talent and skills, good infrastructure, quality of life, and a favorable macroeconomic context put Porto at the top of foreign investors' preferences. The bet has significant implications in terms of job creation.

This is one of the conclusions of a study carried out by Predibisa for the real estate sector, which states that "Porto and the North Region have higher rates of attractiveness than the center and south of the country".

Over the past decade, "the region has managed to attract diversified and high-value investment, ultimately attracting talent. This investment is notorious in traditional sectors with innovation components, which distinguish Porto from other cities, with real estate demand leveraged on four indicators: macroeconomic, talent and skills (know-how), good infrastructure and quality of life".

Compared to Lisbon, the values ​​also weigh in the balance. Prices per square meter are generally lower in Porto (the reference value is 3,500 euros per sq. mt. against 5,800 euros in Lisbon), but with regard to the value of yields - the difference between the amount invested and what actually returns to the investor in the form of a profit - the city of Porto provides more guarantees.

No less important is the employment factor. Job creation is superior in Porto. In absolute terms, for each foreign investment project, on average, 115 jobs are created in Porto, while in Lisbon only less than half (47), examines Predibisa.

"Porto has become a point of attraction for international investment. We are talking about a region that is increasingly known as a destination for the installation of companies with added value services since its arguments are very strong for this type of occupants. In addition to the competitive costs of real estate, there is also a highly qualified workforce, a very strong academic and Research & Development (R&D) ecosystem, a Mediterranean climate, and an affordable cost of living, all in a country that is considered one of the safest in the world", says João Nuno Magalhães, general director of Predibisa, who adds that, in the last decade, the Greater Porto region has become more appealing to most companies than any other competing European destinations.

Regarding the effects of the pandemic on the sector, experts believe that it will be overcome when the health crisis is stabilized and that at that time the market will resume the growth trend registered in recent years. 

In June this year, a study by the Municipality of Porto, carried out by InvestPorto, analyzed the effects of the pandemic on the fabric of strategic companies in the city. It concluded that foreign investment maintained a positive trend and even anticipated strengthening activity in the city.

In July 2019, another study on the Attractiveness of Porto and the North Region in the field of Foreign Direct Investment (FDI), commissioned by the municipality from EY Portugal, concluded that FDI in the North Region achieved growth of 11,4% per year, between 2013 and 2018.