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infosiimgroup www . siimgroup . pt DECEMBER2019 RESIDENTIALREPORT infosiimgroup

In spite of a slowdown in the pace of growth in the region, the report by the INE (National Statistics Institute) with the house price statistics on a local level, relating to the behaviour of prices in the 12 months ending on 30 June 2019, continued to show growth in price values. In the last quarters it was the Porto region that was the most dynamic.

€/ m² 3 154 Lisboa 3 000 2 753

2 500 2 231

2 000 1 938 1 762 Porto

1 558 Funchal 1 500 1 460 1 439 1 363 Amadora 1 242 1 304 1 171 1 226 1 264 Coimbra 1 112 1 119 1 060 V.N.Gaia 1 168 1 000 1 099 966 969 1 011 842 896 902 875 Braga 857 818 769 738 647 657 500

0 2ºQ2016 3ºQ2016 4ºQ2016 1ºQ2017 2ºQ2017 3ºQ2017 4ºQ2017 1ºQ2018 2ºQ2018 3ºQ2018 4ºQ2018 1ºQ2019 2ºQ2019

In spite of everything, there is still a disparity in values between the zones of the country and even within them, even taking into account the use by the INE of the median price.

Median sales value per m2 of family accommodation Median sales value per m2 of family accommodation by category of accommodation, Cities, 2Q 2019 by typology of accommodation, Cities, 2Q 2019

Lisbon Lisbon

Porto Porto

Funchal Funchal

Amadora Amadora

Coimbra Coimbra

V.N.Gaia V.N.Gaia

Braga Braga €/ m² 0 5001 0001 5002 0002 5003 0003 5004 000 0 500 1 000 1 500 2 000 2 500 3 000 3 500 €/ m² Existing To ta l New <=T1 T2 T3 >=T4 Total

01 RESIDENTIALREPORT infosiimgroup

In terms of analysis by parishes, in Lisbon the variation in prices was more uniform (higher concentration in the graph below) with the Historic Centre once again out front and the more Eastern and Western areas, with more contained behaviour in the , which was the most dynamic in previous periods. continues to be a statistical anomaly which reflects the predominance of a single top of the range project in the total sales of the parish: the Prata Living complex.

Median value and rate of year-on-year variation of the median sales value per m², Lisbon and parishes, 2Q 2019

5090 LISBON = 3 154 €/ m²

Marvila

4080

//

30 Sto. António Belém Alcântara Sta. Maria Maior Penha de França S. Vicente Misericórdia 20 LISBON= 14,6% Areeiro S. Domingos Benfica Sta. Clara Avenidas Novas 10

Lumiar

0

Parque das Nações Rate of year-on-year variation the median sales value per m², 2Q 2019 (%) -10 0 400 800 1 200 1 600 2 000 2 400 2 800 3 200 3 600 4 000 4 400 4 800 5 200 Median sales value per m² of family accommodation, 2Q2019 (€/ m²)

02 RESIDENTIALREPORT infosiimgroup

Median sales value per m² of Rate of year-on-year variation Parish family accommodation of the median value of sales (€/m2) | 2Q 2019 per m² (%) | 2Q 2019

Lisbon 3 154 14,6 Marvila 2 855 85,0 Olivais 2 353 26,5 Santo António 5 131 25,0 Beato 2 380 24,4 Belém 3 571 24,1 Santa Maria Maior 4 509 24,1 Alcântara 2 973 23,2 Penha de França 2 811 23,0 Ajuda 3 125 21,9 Misericórdia 4 718 21,2 São Vicente 3 467 20,2 Campolide 3 133 19,0 Benfica 2 619 18,8 Campo de Ourique 3 640 17,6 Arroios 3 264 16,9 Areeiro 3 125 15,7 São Domingos de Benfica 3 128 14,3 2 023 13,7 Avenidas Novas 3 778 13,2 Carnide 3 104 13,1 Alvalade 3 350 8,5 2 574 4,3 Estrela 3 487 0,4 Parque das Nações 3 302 -5,5

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What are your expectations for the Portuguese real estate market in 2020?

By António Nunes, Director of Siimgroup

The attraction of portuguese real estate in the international market will be essential for maintaining the dynamism of transactions, specifically in the market of the Lisbon and Porto Metropolitan Areas, which lead in terms of the cycle of volumes and prices.

After a stage in which the presence of the international players was noted more on the demand side, 2019 and presumably 2020 will be years in which these will also be present on the supply side, not only in terms of the rehabilitation and/or conversion of isolated buildings but also in medium-sized and large undertakings involving different types of investors and offering typologies and prices aimed at the portuguese home buyers. Alta de Lisboa and Miraflores stand out in this movement.

It is in the high-end and very high-end segment that the percentage of sales to foreigners is more prominent and this has even caused this range to take off to increasingly higher levels. With regard to the mid/high-end segment, the growing offer of new or “renewed” apartments in Lisbon above € 6,000 / € 7,000 per m2 has caused sales of these apartments to slow down, even though most of them continue to be sold “off-plan” before their conclusion.

Various projects increasing the offer of new office buildings have been announced (we highlight the Parque das Nações and the site of the former Feira Popular) which, together with the inadequacy of much of the “old” offer in the CBD, has accelerated the rapid conversion of various units of the latter for habitation with lower costs / time than a new project. Avenidas Novas have led this movement.

Lastly it should be mentioned that the traditional housing market competes for space not only with offices and hotels (in continuous expansion) but also with new types of occupation, like co-working spaces (now gaining ground) and various operators (including some of the largest European operators) of the student housing segment. In this context buildings in a poor condition (of which there are stillmany) in the cities are actively dbid and have already risen to prices that make it increasingly difficult for there to be margin for all of the parties involved.

As in all markets, the winning projects will be those that can manage this balancing act more efficiently.

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Upcoming publication of results

Housing price index 3rd Quarter 23 December of 2019 2019

Survey of housing November assessment by 2019 30 December Planned banks

Is Alvalade undergoing a revolution?

One zone (Rua José Saraiva and Rua do Centro Cultural) that until now has been overlooked is under the radar of the investors. After the sale got under way of the undertaking in the former AEG building (prices in the order of € 5,000/ m2) the sale of a warehouse was now announced by CBRE the use of which has not yet been disclosed but which can mean a new life for these streets in a zone with ample commerce and services.

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