This is one the main ideas defended by the real estate consultant in its latest market report, where it concludes that «Porto and the Northern Region show attractiveness rates higher than those shown in Central and Southern Portugal».
This conclusion is supported by the experience acquired during the last thirty years, Predibisa lists a set of reasons that justify the region’s growing attractiveness as a magnet for international capital.
On one hand, it indicates, «Porto has lower prices, having registered, during the last few years, variations in terms of values; number of operations; foreign investment and job creation much higher than the national average and much higher than those registered in Lisbon». Comparing Porto and Lisbon, new construction reference values are 3.500€/sqm in Porto and 5.800€/sqm in Lisbon, whereas the average gross yield is 5.9% in Porto and 4.6% in Lisbon. The number of average jobs generated per foreign investment project is 115 in Porto and 47 in Lisbon.
Growth pace will recover in the post-pandemic
The pandemic interrupted Porto’s real estate market’s momentum, which started 2020 in earnest growth. Despite the expected deceleration in terms of housing sales this year due to the current situation, experts at Predibisa nevertheless expect that as soon as the pandemic is overcome, the growth pace and trend registered in the last few years will be retaken.
«In the last few years, Porto has become an attraction for foreign investment. This is a region increasingly more well known as a destination for added value companies since it has very strong arguments for this type of occupants. Besides competitive costs in terms of real estate, there is a highly qualified workforce, a very strong academic and I&D ecosystem, a Mediterranean climate and an affordable cost of living, all this in a country considered to be one of the safest in the world. It has been clear during the last decade that the reality of the Greater Porto region is much more appealing for the majority of companies than other European rival destinations», stated João Nuno Magalhães, Predibisa’s general manager.
Taken all this into account, «even if this crisis is different from all the ones that came before, real estate is and will continue to be a shelter for investors and that will not change», said Predibisa’s founder.