Thinking of investing in real estate in Europe? Then Lisbon could be the prime choice for location, according to the latest annual report by PwC and Urban Land Institute, titled “Emerging Trends in Real Estate, Creating an impact, Europe 2019”. Indeed, Lisbon ranked first this year for overall prospects, rising 10 places from last year to take the number one spot.
The plus factors
Although Lisbon earned its top ranking for overall prospects, plenty of specific reasons were named as being in its favor. Interviewees for the report cited the city’s “quality of life” and its “positive” leadership, as well as being on “everyone’s platter of cities they like” as an international destination for tourists, investors and companies alike.
Positive financial returns
Additionally, Portugal’s economy is experiencing healthy growth, and, despite the small size of its real estate market, outsize returns on investment are currently being experienced. One firm quoted in the report anticipates almost 10 percent rental growth in 2019 from its office portfolio in Lisbon. Generally, the city has low supply and high demand for office space with undersupply expected to last for two to three years, thus making speculative office development or refurbishment among the potential opportunities. Lisbon’s reputation as a digitally connected city with relatively cheap labor and quality of life is also behind the current boom that is seeing international corporates looking to expand in the country. As one private equity investor said in the report, “Everyone is talking about Lisbon now”.
In recent years, FFA Real Estate has been expanding its portfolio of real estate development in Portugal. Explore our projects, Prateato and Braamcamp, located in Lisbon or contact +961 1 960 777 for more information.
Source: www.bestguide.pt/en/articles-and-stories/2019-lisbon-leads-european-real-estate-investment/
