Trend in urban rehabilitation is everywhere in Porto downtown

"The increased volume of commercial transactions in the historical centre of Porto underlines the divestment policy of this market, whose economic potential was not being exploited" states Confidencial Imobiliário that has signed today an agreement for the systematic monitoring of urban rehabilitation statistical data in the municipality.

According to Rui Moreira, Mayor of Porto, at issue is the creation of an information tool that ensures transparent, evidence-based information which falls within the public policy remit, "to address market failures".

"The trend in urban rehabilitation and real estate demand in Porto is everywhere from Cedofeita to Santo Ildefonso and Bonfim", affirmed Confidencial Imobiliário (Ci).

"The demand for real estate in the city centre of Porto has increased, both internationally and from Erasmus students, providing the city with a new potential and opening up new prospects in areas that long lacked any investment plan", Ci concluded.

The historical centre (the only ARU- Area for Urban Rehabilitation for which Ci already has available statistical data, as a result of a partnership with Porto Vivo in late 2014) emerges as a new paradigm of a unique urban regeneration.

Last year alone, investment in this area grew by 64% compared with 2015, totalling 154 million euros and 513 registered properties.

Rui Moreira affirmed that "it is important to let the internal market operate, with benefits for the private market and also taxes that aid to address market failures".

"That is what the City Hall is doing, when we rehabilitate dwellings in the historical centre that are meant for residents that are unable to move to that area, we are exactly tackling the market gaps without preventing it from functioning suitably", the Mayor Rui Moreira added.

"Licensing projects in the historic centre have quadrupled in the past four years", the Mayor said and admitted that regarding traffic issues downtown, the City hall has to take account of the particular nature of this problem and concluded by saying that "growing pains are common where there is ongoing investment. That is how cities grow".

It is worth noting that databank Confidencial Imobiliário is the only source in Portugal with available statistical data on transaction prices and leases regarding residential properties.