FCGM - Soc. de Med. Imob., S.A. | AMI 5086 Realtors - Med. Imob., Lda. | AMI 5070

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infosiimgroup www . siimgroup . pt JULY/AUGUST2019 RESIDENTIALREPORT infosiimgroup

Market in a consolidation period

The market is in a period of consolidation, with the foward indicators looking like the PHMS (Portuguese House Market Survey), which measure the opinion of a panel of professionals in the market, confirming a slowdown in the number and value of transactions together with the lowest expectation for the next 12 months since the upturn in the cycle in 2013.

Until the end of the year we will still be seeing the publication of very positive figures but which for the most part, in the case of used premises, relate to deals concluded in 2018 and, in the case of new buildings purchased “off-plan”, to deals concluded in some case more than 18 months ago. It is the case of the results published by the INE (National Statistics Institute of ) or the base of Confidencial Imobiliário SIR (Residential Information System) which relate to the information of the Inland Revenue or pre-emption rights of the CML ( City Hall), when the deed is signed. On the other hand the database of the SIR-RU (Residential-Urban Renewal Information System) relates to sales at the time of closure of the deal and so, if there is an inflection in the market, it will be in this one where it will be felt soonest.

Having made this caveat for interpreting the results, we would nevertheless emphasise that the statistics on local prices recently disclosed by the INE (25 July) allow the following conclusions to be drawn: In the period of 12 months ending on 31 March 2019, all Portuguese cities with more than 100,000 inhabitants (those covered in this study) presented positive change in the median for €/m2 compared with the previous period (31.3.2017 to 31.3.2018). Within these, Lisbon appreciated by 20.7% to 3,111 Euros. In the LMA (Metropolitan Area of Lisbon), only saw its rate of increase go up compared with the previous quarter.

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Median sales value per m2 of family accommodation, Portugal and Cities, 1Q2016-1Q2019

€/ m² 3 111Lisboa 3 000

2 581 2 500

2 143

2 000 1 875

1 682 Porto 1 542 Funchal 1 500 1 405 1 227 1 286 1 379 1 304 Amadora 1 176 1 234 Coimbra 1 088 1 224 1 124 1 011 PORTUGAL 1 063 1 000 1 087 941 1 004 V.N.Gaia 830 950 827 881 875 833 Braga 763 790 705 642 652 500

0 1ºQ2016 2ºQ2016 3ºQ2016 4ºQ2016 1ºQ2017 2ºQ2017 3ºQ2017 4º Q2017 1ºQ2018 2ºQ2018 3ºQ2018 4ºQ2018 1ºQ2019

Within the parishes of Lisbon, the purchasers for zones that until recently were less valued became more diversified, with over 30% growth in the median in , , and Alcântara (we have to take into account the relative importance of one particular riverfront undertaking in the total sales of the parishes when we interpret the variation in Marvila).

Median value and rate of year-on-year variation of the median sales value per m², Lisbon and parishes, 1Q 2019

6090 Marvila LISBON = 3 111 €/ m²

5080

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40 Ajuda

Beato Alcântara 30 Sta. Maria Maior Belém Penha de França LISBON= 20,5% S. Vicente 20 Sta. Clara Sto. António S. Domingos de Benfica Misericórdia 10

0 Parque das Nações Rate of year-on-year variation median sales value per m², 1Q 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 Median sales value per m² of family accommodation, 1Q2019 (€/ m²)

In contrast, the Parque das Nações continues to be a parish where the prices are suffering in comparison with the golden era of the Golden Visa in this zone. 02 RESIDENTIALREPORT infosiimgroup

Median sales value per m², Lisbon and parishes, Rate of year-on-year variation of the median sales 1Q 2019 value per m², Lisbon and parishes, 1Q 2019

Sta. Sta. Clara Clara

Lumiar Olivais Parque Lumiar Olivais Parque Carnide das Carnide das Nações Nações Alvalade Alvalade S. S. Domingos Marvila Domingos Marvila de Benfica de Benfica Avenidas Areeiro Avenidas Areeiro Benfica Novas Benfica Novas Campolide Penha Campolide Penha Arroios de Beato Arroios de Beato Campo de Sto. França Campo de Sto. França Ourique António S. Ourique António S. Vicente Vicente Ajuda Alcântara Sta. Ajuda Alcântara Sta. MisericórdiaMaria Misericórdia Maria Estrela Maior Estrela Maior

Belém Belém 2 Frequency Frequency €/ m % Parishes Parishes ] 3 500 ; 4 742 ] ] 30 ; 88 ]

Lisbon ] 3 111 ; 3 500 ] Lisbon ] 20,5 ; 30 ] ] 2 500 ; 3 111 ] [ 0 ; 20,5 ] [ 2 058 ; 2 500 ] < 0 Territorial limits Territorial limits 31196693 1 3119 1 Parish Parish 01km 01km Municipality Municipality

Meanwhile, projects to develop the connection of the city to the river and to the sea continue to be announced

OCEAN CAMPUS The riverside zone between Pedrouços, and Cruz Quebrada will be redeveloped by 2030, in a total investment of 300 million Euros. With a special focus on Pedrouços Marina where an investment of over 100 million Euros is estimated, this project aims to redevelop an area of more than 60 hectares and create a "cluster" for the development of sciences and activities related with the sea. In the ceremony, an open tender was also launched for the concession to operate Pedrouços Marina, and the ‘bicycle path of the sea’, which connects Lisbon to Oeiras was inaugurated.

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VIC Properties acquires land at Matinha, thereby connecting the Parque das Nações to the Prata Riverside Village

With an area of approximately 20 hectares, and a planned total of 260,000 sqm of above ground construction area, VIC Properties plans to build more than 2000 new dwellings on this land, in what will be one of the largest real estate projects in Portugal. The company estimates that the works will commence at the start of 2020, with work being developed over the following years. In the whole area, diverse infrastructures dedicated to leisure and services will be created that will transform this part of the city. As in the Prata Riverside Village, a project already in progress undertaken by VIC Properties, the aim is to create an integrated space dedicated exclusively to people and their quality of life.

With this acquisition, and taking into account the construction of the Parque Riverside Oriente, which is under way, VIC Properties will thus connect the Parque das Nações to the Prata Riverside Village, pursuing its mission of redeveloping a part of the city that has long been neglected.

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