Investment in the city demonstrates 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 Councillor for the Economy, Employment and Entrepreneurship looks ahead to this year with 'very positive prospects' as long as 'they let things work'.

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. Furthermore, 'it's important to realise that Europe has seen a decrease of twice as much'. Therefore, the Councillor underlines, 'Porto compares positively and I think the trend is set to continue'.

Ricardo Valente says this is because the year-on-year outlook for the first quarter of 2024 is already better than last year and the city is taking advantage of the crisis in countries like Germany, which 'is forcing a large number of companies to reposition their business centres to locations that are capable of responding to talent needs'.

The Councillor, while 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 business qualification' to be 'very relevant signs'.

'We're already receiving not just share services, but corporate centres, technology centres and, in some cases, research centres. And that's extremely important', Ricardo Valente emphasises.

And adds: '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 overall 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 struggling to adjust 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 'tax policy stability' as well as 'territorial planning policies' and a mindset change so that 'in 40 years' time we won't face 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, figures show a 'consolidation trajectory due to the recovery of tourism, the recovery of existing assets and the emergence of new projects'. 'This consolidation creates a unique and cosmopolitan atmosphere that enhances the purchase experience, boosts local economy and solidifies Porto's position as a vibrant and prosperous city', JLL emphasises.

At the end of the day, those present realised that Porto has long since stopped being the country's 'second city', becoming one of Europe's largest cities.