Investment in the city proves a dynamic and resilient real estate market in 2023
A dynamic region and a resilient city, which continues to be able to attract foreign direct investment (FDI) and take advantage of other crises as opportunities, are some of the conclusions that can be drawn from the analysis of the real estate market in 2023, presented on Thursday afternoon at Porto Business School. And the City Council for Economy, Employment and Entrepreneurship looks ahead to this year with "very positive prospects" as long as "they let things work out".
Considering
the reduction in FDI to be normal, Ricardo Valente points out, however, that
Porto alone accounted for half - 483 million euros - of the investment in the
Metropolitan Area. In addition, "it's important to realize that Europe has
seen a drop of twice as much". Therefore, he stresses, "Porto
compares well and I think the trend is set to continue".
This is because, says Ricardo Valente, the outlook for the
first quarter of 2024 is already better than the same period last year and the
city is taking advantage of the crisis in countries like Germany, which
"is causing a large number of companies to have to reposition their
business centers to locations that are capable of responding to the needs from
a talent point of view".
The
councillor, who was speaking at a round table alongside the managing director
of Geo Investimentos, Carlos Gois, the architect of Morais Soares Arquitetos,
Duarte Morais Soares, and the manager of Mercan Properties, Miguel Gomes,
considers the permanent arrival of large companies to set up in the city,
bringing "a greater qualification of business" to be "very
relevant signs".
"We're now receiving not just share services, but corporate centers, technology centers and, in some cases, research centers. And this is extremely important," says Ricardo Valente.
He added:
"the outlook is positive, let's hope the country doesn't spoil the
dynamics, let things work, don't get in the way." In terms of support, the
panel did not fail to mention the important support provided by InvestPorto.
11% of
global investment was in Porto
With regard to real estate investment in the housing sector, the councillor said that the complexity of the issue is related to "a market that has great difficulty adjusting to the dynamics and triple changes in the world: demographic, social and economic".
"Housing is not a problem, it's a consequence," he
says, calling for "stable fiscal policy", as well as
"territorial planning policies" and a change in "mindset"
so that "in 40 years' time we won't have these same problems again".
In general terms, the Market 360º study, presented by real
estate developer JLL, states that 11% of the 1.7 billion euros invested in
Portugal went to Porto, with demand for office buildings remaining in line with
previous years.
In the
retail sector, the figures show a "trajectory of consolidation due to the
recovery of tourism, the renovation of existing assets and the emergence of new
projects". "This consolidation creates a unique and
cosmopolitan atmosphere that enhances the shopping experience, boosts the local
economy and solidifies Porto's position as a vibrant and prosperous city,"
says JLL.
At the end of the day, those present were struck by the reality of a scenario in which Porto stopped being the "second city of the country" some time ago and became one of Europe's biggest cities.