Source: Freepik Author: Redaction The Municipality of Évora has included in its Local Housing Strategy a project aimed at the construction of a new neighborhood, which will be renovated through the demolition of what currently exists there , provisional for several decades in the municipality, and where about 70 families reside. This is a project for which 26 million euros are allocated. Carlos Pinto Sá, Mayor of the municipality, indicates that the subdivision architecture project has already been approved and should proceed to be launched, after the infrastructures are executed, the tender for the works: We will make every effort so that, during this year, the competition for works can be launched, says the mayor. Contemplated in the Local Housing Strategy of Évora, this is one of the projects contracted with the Government and foresees an investment of 63 million euros with the Financing of the Recovery and Resilience Plan (PRR). The objective of this intervention, according to the municipality, goes through the rehabilitation of the neighborhood , which is located next to one of the main roads of the city, finding itself very degraded . It is a provisional area, which should have been outdated for many years. Bairro Escurinho has about 70 families to live in, some of them own the lots, and we decided to move forward, not with a rehabilitation, but in practical terms, with the construction of a new neighborhood , explains Carlos Pinto Sá. Thus, the current housing will all be demolished to give rise to 122 new fires with dignified conditions, allowing rehousing the current residents who want to continue there and accommodate new ones. In this sense, the current residents will be rehoused temporarily while the works are done . In addition to this project, one of the subdivision architecture was also approved for the construction of 40 fires in a plot of land in the Moinho neighborhood, and it also integrates the Local Housing Strategy of Évora, for which an investment of 5 million euros is allocated. Follow also: AHETA wants to build social housing to capture labor , Government approves use of € 1.5 million for works in the Lisbon Metro and Social tariff of natural gas: discount of 3.1% will remain
Source: Pexels Author: Redaction Banco de Portugal released on Wednesday, March 27, data on bank profits, which increased by 80% in 2022 compared to 2023. According to the bank, the banks in Portugal were able to make EUR 5.6 billion last year as a result of rising interest rates. This is already a historic result for the sector. The five largest Portuguese banking institutions, which include Caixa Geral de Depósitos (CGD), BCP, Santander, BPI and Novobanco, managed to reach 4.4 billion euros in profits last year, 78% of the result obtained by the entire national banking system. Thus, the profitability of the sector almost doubled as a result of the increase in profits , from 8.7% in 2022 to 14.8% in 2023, compared to equity, and there were banks exceeding 20%, namely Caixa, Santander and Novobanco. As for the profitability of assets , that is, the level of profits as a function of assets, this doubled from 0.69% to almost 1.3% , with the sector operating an asset of 422.2 billion euros. Read also: Older companies have higher turnover , ECB warns of risks with bad loans
Source: Freepik Author: Redaction The luxury residential market in Portugal continues to grow, with the Algarve, Porto and Lisbon highlighted. These findings are in The Wealth Report , an annual study by consultant Knight Frank, a partner of real estate firm Quintela and Penalva since 2021, which also reveals that one million euros gives only to buy 67 m 2 in Quinta do Lago, while with the same value it is possible to acquire 110 m 2 in Barcelona or 90 m 2 in Lake Como, Italy. The study, sent in a statement to SUPERCASA Notícias , shows that the Algarve is in the top 5 of the world markets in the luxury residential sector, where prices performed best in 2023. According to the study, among the top 100 destinations in the world in terms of price appreciation in 2023, the Algarve appears in fourth position, with a price increase of 12.3%, o nly behind destinations such as Manila (Philippines, 26.3%), Dubai (United Arab Emirates, 15.9%) and Bahamas (15%). With one million dollars, it is possible to buy in Quinta do Lago, in the Algarve, a luxury residence second home with 67 square meters (m 2 ), while with the same value it is possible to acquire 110 m 2 in Barcelona, Spain, or about 90 m 2 in Lake Como, in Italy. The lack of supply and the unique character of Quinta do Lago, explain the sharp growth in prices. Lisbon and Porto continue to grow In the list of cities and regions with annual growth in stable or positive prices are the cities of Lisbon and Porto . The two cities remain on positive ground, with growth in the order of 2.2% and 5%, respectively. Thus, Porto appears in 29th position , ahead of, São Paulo, Rome, Barcelona, Milan or Paris. Already Lisbon, is in 60th place, and surpasses cities such as Dublin, Vienna, Tokyo, Berlin or New York. The Knight Frank study also reveals that the price of luxury real estate in Lisbon is still expected to grow in 2024, in the order of 2.5%, being preceded by Seoul, South Korea, Zurich, New York or Paris. For Francisco Quintela, CEO of Quintela e Penalva, Knight Frank’s partner in Portugal , Lisbon remains on the radar and is in the top 10 of the survey in terms of location for new buyers, as stated in The Wealth Report. The forecast for growth in luxury prices in Lisbon remains very significant, as demand remains very strong in the luxury housing market, particularly in Lisbon, Cascais and Comporta, where the demand for luxury properties has increased significantly . He adds that this reality is mostly corroborated by the interest and realization of business by foreign investors, with high investment capacity. According to The Wealth Report, which tracks the performance of luxury properties in 100 key locations (including cities, sun and ski destinations), 80 locations experienced stable or positive annual price growth. Manila (26%) leads, but last year’s leader Dubai (16%) fell just one place. Asia-Pacific (3.8%) overtook the Americas (3.6%) to gain the title of best-performing world region, with Europe, the Middle East and Africa lagging behind (2.6%). As predicted last year, sunny locations continued to outperform, with an average increase of 4.7%, closely followed by ski resorts (3.3%) and cities (2.7%). According to Knight Frank’s The Wealth Report 2024, the number of UHNWIs in Portugal - those with a net worth of $30 million or more - will increase by 25%, reaching 1000 individuals by 2028. For Kate Everett-Allen, Head of International & Country Research at Knight Frank , in the note to which SUPERCASA Notícias had access, this fact, combined with the expectation that the ECB will start reducing rates in the summer, along with the recovery of the tourism sector in the country, will attract more second home owners and investors. It is thus expected that luxury prices will increase 2.5% in Lisbon in 2024. Follow more topics like this in SUPERCASA Notícias
Source: Pexels Author: Redaction The Algarve region has been affected by the lack of housing , particularly in the tourism sector, because there are no houses, there is no capture of labor . In this sense, the Association of Hotels and Tourist Developments of the Algarve (AHETA) warns of this situation, showing willingness to build social housing that houses the workers of the area. To this end, they are asking for land exchanges at more reasonable prices than those in the market, but there has never been a response from the Government, and Hélder Martins, President of AHETA, underlines: if today we have to import manpower, we can only really attract workers who come from outside if we give them housing, without that it is no longer possible. Thus, to encourage the capture of more manpower, hotels are willing to move forward with a model of simple construction, not for rich for social housing on the outskirts of the city, namely in Loulé, Albufeira and Portimão, in order to ensure accommodation, as well as transport for displaced workers. However, the President of the Intermunicipal Community of the Algarve (Amal), and also Mayor of Olhão, António Pina , reiterates that the municipalities do not have these lands to be made available , adding that, even if they had them, they would be allocated to the construction of public housing for the Algarvian, who cannot afford a house . Discover also: Overnight stays in tourism registered a slight decrease in January
Source: Freepik Author: Redaction Data from the National Institute of Statistics (INE) advanced this Monday, March 25, show that, in 2023, fewer residents in Portugal bought a house, representing the lowest value since the beginning of the series started in 2019 . Thus, in 2023, the number fell 19.8% compared to 2022, settling at 126,108 units, which totals 92.4% of the total number of transactions. In value, purchases from domestic buyers represented 24,400 million euros out of a total of 28 billion euros of the properties traded in 2023. This weight is 87.3%, the lowest since 2019, with a drop of 1.3 percentage points compared to the previous year. As for purchases of houses made by residents with fiscal domicile outside Portugal, the number totaled 10,391 units , that is, 3.1% less compared to 2022. This represents EUR 3.6 billion, down 1.4% year-on-year. Follow up: Foreigners make up 11% of the housing credit allocated in 2023
Source: Freepik Author: Redaction The Gaia Biological Park is to undergo refurbishment and extension work to provide better conditions for its visitors, in an investment totalling 4.5 million euros by the city council. The lions share of this sum will be allocated to work on the main building, which is scheduled for completion in 2027. Last year alone, the Gaia Biological Parks environmental education centre received 44,000 more visitors than in 2022 , making it one of the reference points for people coming to the municipality. Now, in the year that will mark its four decades of life, the Vila Nova de Gaia City Council is preparing an investment of around 2.5 to 3 million euros for the remodelling and expansion project of the main building , which is part of a 35-hectare agroforestry area where hundreds of species of animals and plants live in the wild. The objectives proposed for this space are being met at a good pace, particularly with regard to its extension, says the municipality led by Vítor Rodrigues. In addition to the planned interventions, an architectural project worth 70,000 euros will be launched in May for the Biological Parks Reception Centre , as well as an intervention to extend the motorhome park and the construction of the support building. Read also: Cascais to go ahead with mega-urbanisation at Quinta dos Ingleses , Azores wants to provide 2,000 homes by 2034 or Porto reaches 13.28% of unbilled water in 2023
Source: Freepik Author: Redaction In February, activity in the office market was driven by the strong dynamism of demand, with absorption levels more than tripling monthly in both Lisbon and Porto. In accumulated terms, the capital market is the one where the resumption of occupation is most evident, being very close to the barrier of 50,000 m2 to one month from the end of the quarter. The data are released by JLL under the Office Flashpoint, in a statement to SUPERCASA Notícias , a monthly report that presents the performance of the occupational market of offices in Lisbon and Porto. Exhibiting exceptional levels of activity, in February 18 operations were carried out that totaled an office occupation of 42,300 m² in Lisbon, a volume that is six times higher, both compared to the previous month and compared to the same month of 2023. February is also marked by the completion of several businesses involving large areas, which translates into an average area per operation of 2,350 m² and six operations involving spaces greater than 1,000 m². The monthly occupation was impacted by the change of the headquarters of the Caixa Geral de Depósitos (CGD) to the WELL BE building, in Parque das Nações, which involved an area of 26,700 m2 and is believed to be one of the largest of the year. In any case, other large operations are highlighted, namely the installation of Monday by Urbania in Marquês de Pombal 2 (3,850 m²); and a 2,240 m² outlet operation in zone 4. Mirroring the impact of the change from CGD to the results of the month, zone 5 - Parque das Nações was the most dynamic in this period, concentrating 64% of the monthly absorption, while the Financial Services sector led the occupation side, with an identical share. Likewise, the sale of space accounted for 63% of the occupation, with the lease representing only 35% of the monthly absorption. JLL has served on four of these operations, placing a total area of 5,500 m² this month. In cumulative terms, in the first two months of 2024, 49,060 m² have already been occupied and 30 operations have been completed in the capital’s office market, with the volume of absorption more than quadrupling from the 10,600 m2 taken in the same period. In these two months of 2024 were registered nine operations involving areas greater than 1,000 m², contributing to the average area per operation has increased to 1,635 m². More than half (57%) of the area traded since the beginning of the year is in Parque das Nações (zone 5), with Prime CBD (zone 1) being the second most dynamic axis, with 18% of the occupation. The Financial Services sector was the major driver of demand, ensuring 60% of occupancy. February was also a favorable month for the Porto market, which reached an occupation of 4,850 m² and growth of 233% compared to January and 27% year-on-year. Of the five completed businesses, four were advised by JLL - which guaranteed 98% of the monthly occupancy, 4,740 m² -; three of which involved spaces greater than 1,000 m², boosting the average area per operation to 969 m². In terms of typology, all operations were leased for immediate occupation. Zone 3 - Oporto Business Zone received 57% of the occupation, strongly driven by the installation of two new entities in ICON Offices, namely Fujifilm (1,624m²) and Vodafone (1,046 m²). These two operations were advised by JLL, which was also the consultant responsible for placing i-Charging in an area of 1,730 m² in Marechal 50 (zone 1), in what was the largest business to date. The TMT’s & Utilities sector was the most dynamic on the demand side, ensuring the uptake of 98% of the space transacted this month. The good performance of February raised to 6,300 m² the accumulated occupancy of the Porto office market in 2024, slightly below (- 8%) the level of activity reported in the same period last year (6,900 m²). The number of businesses completed since the beginning of the year decreased by 18%, to a total of nine, of which three comprised areas exceeding 1,000 m². Still, the average area per transaction rose to 700 m². Zones 3 - Zona Empresarial do Porto and 1 - CBD Boavista are the most dynamic, receiving 47% and 45% of the cumulative occupancy, respectively; the TMT’s & Utilities sector is responsible for taking 92% of the spaces. Sofia Tavares, Head of Office Leasing at JLL comments: The results of February confirm our projections for this beginning of the year, with the Lisbon market clearly leading this movement of recovery of demand; which is not surprising, since it was also in the capital that the occupation stopped more in 2023. We are optimistic for 2024 and confident in the evolution of occupation in both cities, which should approach the annual average of recent years. Go to SUPERCASA Notícias for more topics about the real estate market
Source: Freepik Author: Redaction Christine Lagarde, President of the European Central Bank (ECB) on Thursday, March 21, expressed some concerns about banking’s exposure to commercial real estate and the volume of bad loans, speaking of the resilience of Eurozone banking in 2023. According to her, in the ECB’s annual report , there is a feeling that European banks have continued to navigate in last year’s challenging environment: although higher interest rates have affected the net interest margins of euro area banks, leading to an average return on equity of 10% in the third quarter of 2023, deposit rates and non- depositsPerforming loans [NPL/bad loans] are increasing . In this sense, Lagarde indicated that supervisors will continue to closely monitor risks, namely the exposure of banks to vulnerable sectors such as commercial real estate, addressing concerns about bank governance and internal risk control frameworks . The head of the ECB also argues that resilience and adaptability will be crucial to address the structural challenges posed by climate change and digitalization , pointing out that already this year, it is expected that banks meet the ECB’s supervisory expectations on climate and environmental risks and integrate these risks into their risk management strategies and processes . He concludes: as the use of artificial intelligence becomes more widespread, supervisors will continue to scrutinize bank digitization strategies and their resilience to cyber attacks. Read on Remittances of emigrants: value increased compared to last year
Source: Freepik Author: Redaction The first 3D houses have already arrived in Portugal. This innovation translates into a breakthrough that can revolutionize the way housing is built, allowing to respond to the vulnerabilities of the housing sector, particularly with regard to the lack of houses in the market in view of demand. The Portuguese company Havelar has thus built the first 3D house in Portugal, which will have taken about two weeks to complete. This is a novelty that has been quite common in foreign countries , but now finally comes to life in our country. The dwelling in question, built in Vila do Conde through a 3D printer, has 90 square meters and is T2 , with concrete walls. This structure took more than 18 hours to be erected, prepared to withstand earthquakes and thermal variations. If you are interested in learning more about 3D houses, read Houses 3D printed: the future of the Real Estate Market?