Portuguese Real Estate News 23/10/2023

Arrow Global acquires “Estalagem da Cegonha” for 90 million euros

Arrow Global, a European asset manager, has acquired “Estalagem da Cegonha” in Vilamoura for €90 million. The historic 16th-century building, once frequented by royalty and poets, will be transformed into a luxury boutique hotel. The acquisition also includes two land parcels, one for a 40-room boutique hotel and 76 tourist residences, and the other for 21 villas, as reported by vidaimobiliaria.com

The “Estalagem da Cegonha” is considered an iconic property in Vilamoura and Portugal, with significant historical value. Arrow Global has ambitious plans for the property's redevelopment, aiming to leverage its five centuries of history. The location, close to golf courses and other attractions, is expected to attract premium tourism to the area.

The acquisition was facilitated by Norfin Servi?os, a Portuguese asset management subsidiary of Arrow Global.

Former Oeiras Petrochemical land sold for 12.6 million

The Municipality of Oeiras has successfully sold the land formerly occupied by the Companhia Nacional de Petroquímica to the company índicegeneroso for €12.69 million, following multiple failed attempts to sell the property, as reported by vidaimobiliaria.com

índicegeneroso, a company owned by two Chinese partners with a capital of €500, was the sole bidder to meet the municipality's minimum required price, marking the sixth attempt to sell the property after reducing the initial value and making adjustments for construction purposes.

The municipality envisions the development of housing, commerce, services, an aparthotel, and residential units on the 20,000-square-meter site, which currently contains dilapidated structures from the former petrochemical company. The new owner is required to begin demolition and construction within specific timeframes after the sale.

Housing market drops by 22% in the first half

The Portuguese housing market has seen a 22% decrease in the number of homes sold and a 16% decrease in transaction value in the first half of the year, attributed to rising property prices and higher interest rates, as reported by ECO- sapo.pt

Despite the decrease in sales, property prices have continued to trend upwards, albeit at a slower pace. Over the last three years, prices have risen by 25% for sales and 23% for rents.

According to the consulting firm JLL in the latest version of the Portugal Living Destination study, there′s been a shift towards peripheral areas of major urban centers as more families seek affordable alternatives due to increasing construction costs and property prices, with particular growth observed in areas like Mafra, Seixal, Loures, and Amadora in the Lisbon metropolitan area.

Foreign buyers, including Brazilians, English, French, and Americans, have a significant presence in the Portuguese property market.

New JPS Group project adds 1,200 homes to Greater Lisbon

JPS Group is launching its largest residential project to date, “Herdade Real de Santiago”, in Peg?es, Montijo, in the Lisbon Metropolitan Area. The development spans 45 hectares and includes approximately 1,200 homes, offering various housing types, apartments, and commercial spaces, as reported by reportugal.vidaimobiliaria.com

JPS Group aims to provide attractive properties for both families and investors, with projected property value increases of at least 40% before construction starts and over 60% upon completion. The development focuses on sustainability and eco-friendly practices, emphasizing low water and energy consumption.

This strategically located project, just a short distance from potential future airport sites, offers extensive community amenities, recreational areas, and a high quality of life, catering to a diverse range of age groups and lifestyles. It aligns with market needs and sustainability, potentially addressing future airport construction requirements.

Unicorn Factory Lisbon plans Welltech hub in Arco do Cego

The Unicorn Factory Lisboa is launching a new Welltech hub in the Arco do Cego area, alongside the Técnico Innovation Center by IST, forming a new Innovation District set to open in the first half of 2024, as reported by ECO-sapo.pt

The Welltech hub will span 700 square meters and bring together entrepreneurs, investors, researchers, major companies, and experts in well-being, mental health, nutrition, and sports. The initiative aims to position Lisbon as a significant player in this industry on a European level.

The partnership between Unicorn Factory Lisboa and the Instituto Superior Técnico (IST) includes the establishment of a robotics research lab, part of the city's efforts to bridge the gap between science and entrepreneurship, fostering innovation, job creation, and value generation for the city and its youth.

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