Below we highlight the latest trending real estate news and property headlines in Lisbon.
Sonae Capital to invest € 12 million on leasing a 120-room hotel in Lisbon’s Santa Apolonia station. This project will represent the group’s first property venture in Lisbon. It will be opened in the first half of 2021. Soane Capital won the competition that was initiated by Infrastructuras de Portugal (IP). The competition rules stipulated a lease for up to 35 years from the government. During the 2-year construction phase, Sonae Capital won’t pay the property rent. The period involves building of a four-star hotel premise in the west and south areas of the establishment. – ESSENTIAL BUSINESS
Data from Confidencial Imobiliário crowns Misericórdia parish as the most expensive area to rent a house in Lisbon. The firm specializes in providing data on new real estate projects, property transaction prices, and residential real estate leases in Portugal. It costs an average of 17.5 € / Square meter to rent a house in Misericórdia parish compared to 9.7 € / Square meter in Marvila parish. Marvila parish is ranked as the cheapest place to rent a house in Lisbon. —IMOVIRTUAL REAL ESTATE NEWS
A joint report by The Urban Land Institute (ULI) and PwC, ranks the Lisbon real estate market as the most enticing in 2019 among major European cities. PricewaterhouseCoopers states that Lisbon’s positive leadership and amazing quality of life has fueled further investments and development initiatives. Real estate professionals have further noted in the report that coworking spaces, co-living residences, and accessible rental properties will most likely provide the best ROI both in investment and development. –EMERGING TRENDS IN REAL ESTATE: EUROPE 2019
Invesco Real Estate sets foot in Portugal through the acquisition of a logistics park in north Lisbon, in an off-market transaction. The group which has a presence in the USA, Asia, and Europe, manages global assets worth more than € 55.2 Billion. The logistics park is an addition to its 151 assets in Europe valued at € 9.9 Billion. The property acquired on behalf of Bayerische Versorgungskammer (BVK),has a gross leasable area of 78,000 square meters which is divided into two plots of land and six warehouses.– EJEPRIME
Developers have submitted proposals to build Lisbon’s €300 million hospital. Hospital de Lisboa Oriental (HLO) to be built in Marvila, East Lisbon is slated to be completed in 2023. The hospital will have a capacity for 875 beds and cover a 180,000 m2 area . The private property developer will invest a total of €330 million after which the state will pay an annual rent over a 27-year contract of € 16 million. According to the Lisbon and Tejo Valley Regional Health Authority (ARSLVT), they have received proposals from eight companies. — ESSENTIAL BUSINESS
Lisbon’s Portuguese Securities Market Commission (CMVM) reports that real estate funds are losing money. Currently, 214 real estate investment funds that operate in Portugal have cumulatively lost €10.6 billion. The commission sites reasons such as trade war concerns between the U.S. and China, Brexit issues, overseas investors seeking new markets, and a dormant economy in the Eurozone as causes. – PORTUGAL RESIDENT
Portugal’s president has enacted the amended rental law by the National Assembly and established new protection laws for senior citizens and disabled people. The law aims to affirm urban rental agreements and ensure the protection of tenants in special circumstances. The law inhibits landlords from revoking the rental contracts of tenants who have lived in the same property for at least 15 years. These tenants comprise of senior citizens (65 years or more) and disabled people. Even if the property is due to undergo major renovations/ demolitions, the landlord must seek similar housing in the same area for the tenants. – JORNAL ECONOMICO
Negotiations are underway between the Institute of Housing and Urban Rehabilitation (IHRU) and Social Security (SS) to transfer management of hundreds of homes to the Lisbon City Council. Lisbon city council accepted this transfer of housing management powers from the state to municipalities. The initiative will provide much needed space in Lisbon through the rehabilitation of derelict state-owned properties. A committee with members from both parties is in place to analyze the transfer. It will have six months to issue a report that clearly stipulates property revenues. —AURA REAL ESTATE EXPERTS
Spanish real estate developer Kronos Homes to invest over €100 million in Parque das Nações area of Lisbon to build a permanent residential complex. The developer plans to construct four 14-story buildings which consist of around 220 to 240 residential unit. Construction will commence in 2020 and occupancy in 2022. The sale of the apartments will however begin in early 2019. The units will range from studios to four-bedroom units with prices starting at € 300,000 to a maximum of € 1.5 million.—PORTUGAL RESIDENT
SIGI- a contemporary Real Estate Investment Company aimed at boosting Portugal’s real estate market especially the lease property scene. A Decree-law no. 19/2019, of January 28 sets to create Real Estate Investment and Asset Management Companies (Sociedades de Investimento e Gestão Imobiliária) or SIGI. SIGI’s main aim is the acquisition of in rem rights such as surface rights and property rights over real estate assets and the acquisition of shares in other similar companies located in the EU. SIGI’s will also enjoy the tax benefits stipulated in the Tax Incentive Statue that is available for other Real Estate Investment Companies. — LEXOLOGY
Written and curated by David Kuria. He is the uber-curious type. A travel and real estate enthusiast. In simplicity, he covers global real estate news from nearly every angle in addition to market movements in finance, the world economy, and other business trends. Follow him on Twitter.