For years, tourism has been the biggest promoter of urban rehabilitation in Lisbon. In the so-called delimited area of the city known as ARU (Área de Reabilitação Urbana), which includes mostly the typical neighborhoods, real estate investment reached 5,2 billion euros in 2019 alone.
Housing represents the biggest slice of the investments, occupying 65% of the transactions of 2019, with 35% of these transactions coming from foreigners.
The parishes that gathered the most investments were Santo António, Santa Maria Maior, Avenidas Novas and Misericórdia, in this order. Together with Arroios and Estrela, these parishes concentrated 60% of all real estate investments in Lisbon’s area of urban rehabilitation.
Foreign investment increased by 7% in 2019 when comparing to 2018. In the Portuguese capital, foreigners invested in 1630 properties inside the ARU, making a total amount of 744,3 million spent. The average transactional value was 478.400€, according to Confidencial Imobiliário.
[re]Lisboa, an initiative of the Urban Rehabilitation Week Lisbon, is also proof of how the sector is adapting to the new times we are living. Totally virtual this year, it is “the most important national event in activating urban regeneration and renovation in Portugal”, says the organization. This year, about 2000 people attended the event online, which says investors are still interested and businesses are not paused.
Ricardo Guimarães, director of Confidencial Imobiliário, believes that the amendments to attractive investment regimes like the Portuguese Golden Visa, announced by the Government last year and supposed to go into effect in 2020, may have triggered some investors to anticipate their investment intentions in Portugal to 2019.
In his opinion, the legal and fiscal measures proposed for the sector should be reevaluated, in order to regain investors’ trust in the program.
However, those amendments are now suspended due to the current situation so the Golden Visa program remains attractive and functioning the same way until further notice. This is still one of the most profitable ways to invest in real estate in Portugal, so if you’re interested do not hesitate to contact us.
Source: Dinheiro Vivo, “Reabilitação Urbana. Lisboa captou 5,2 mil milhões de investimento” (reading in Portuguese)