Porto Residential Market Report Savills Portugal – Edition 2019 Porto Residential Market Report 2019
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Porto Residential Market Report Savills Portugal – Edition 2019 Porto Residential Market Report 2019 Residential Market, on the way to maturity It is with great satisfaction that I write Bringing innovative projects to the market these lines, in what is our first Residential that follow concepts that already exist in study after a few years of absence in the other major cities around the world such as thorough analysis that we once did of this Branded Residences, Co and Senior Living, market. On the one hand, due to the new bet becomes imperative in a country that has that we want to give to this area, bringing to managed to make itself known worldwide the market the sophistication that continues and that is so unanimously desirable for to demand a growing professionalization those who want to settle here. and, on the other hand, the need to monitor Portugal knew how to use the momentum the evolution that this market registers in and be agile in transforming a sector order to provide adequate responses to the that was obsolete and lifeless. Let us now challenges that arise. know, in a more restrained and demanding Starting by giving the market the dynamic, to understand what the market information it deserves through the strong really asks for, which customers seek us, and contribution made by our customers to sophisticate in the service and execution and partners, along with our competent of the projects, previously understanding Patrícia De Melo E Liz Chief Executive Officer research team, it will be an excellent kick- their potential users. But above all, that we Savills Portugal off to embrace the residential sector more can see the residential market mature with effectively. strategy and interconnection between the Buildings on the residential sector have various players, combining the desirable been witnessing a very strong demand and, innovation and evolution of cities, their in a context of contained supply, it brought peripheries and leisure areas with the us a consequent evolution of market prices. “Portugueseness” that so much attracts But there is still a long way to go in the offer foreign audiences, avoiding exacerbated of adjacent services and in the advice that imitations that distort the essence that can and should be given to add value to distinguishes our country. anyone who wants to invest in this area or buy a house to live in. 3 Porto Residential Market Report 2019 Porto Residential Market Report 2019 Portugal in Numbers Porto Since 2013, Portugal has witnessed a solid economic recovery and, above everything else, it has enjoyed a good image and GDP (2018) Unemployment rate Couple international recognition. The solidity signs (September 2019) with children that the national economy has been showing, €202 BILLION 6.6% 1.4 together with the control of public accounts, MILLION have been decisive for the confidence of international players. GDP per capita Resident population Family accommodations 2019 was another successful year of (2018) (2018) (2017) economic consolidation. Although at a slower pace than in previous years, the national €20 K 10.3 5.9 economy continues to show resilience given MILLION MILLION the international uncertainty scenario. Gross national income People living Number of families per capita alone (2018) €17.4 K 939 K 4.1 MILLION Average disposable Couple Active population household income without children (2018) €29.8 K 1 5.2 MILLION MILLION Source Savills Research analysing INE An internationally recognized 2020 KEY POINTS Slowdown in national country... economy in 2020; 215 K 124 K Economy mainly Resident population Employed population sustained by the Awards and distinctions: (2018) (2017) domestic demand than by the exports; Moderate increase in #42 #29 #1 the inflation rate in the coming years; 1.8 MILLION 13 K The Global Competitiveness Doing Business (2017/2018): Best European Tourist Report 2017-2018: Portugal ranks 29th in the Ease of Destination 2019 awarded by the Active population in the Unemployed population nd Resistance to Portugal ranked 42 , especially Doing Business global index World Travel Awards negative external Northern Region (2018) (2018) in the areas of: Infrastructure developments; quality; Health and Basic Education; Technological aptitude Slowing household and Innovation spending; Moderation of employment growth; #32 #1 #4 Stabilization of the unemployment rate (126 countries) Global World Best Quality of Life #4 Global Peace Index 2018 below 7%. Innovation Index Country for Expats Source Savills Research analysing INE 4 5 Porto Residential Market Report 2019 Porto Residential Market Report 2019 AWARDS AND The Residential Market DISTINCTIONS FOR PORTO / NORTHERN in Porto REGION The best adventure The city of Porto has been living times of strong Currently, the city has more affordable prices tourism (2019) appreciation of its housing stock. While Lisbon has than those charged in the Portuguese capital, and is practically doubled its average prices between the not expected to exceed them, although the trend is The best European third quarter of 2007 and the same period in 2019, the towards an approximation that fulfils part of the 40% innovative tourism city of Porto saw the variation reach 67%, a figure that gap that separates the average prices of the two main development project increases to 83% in the case of new units and 57% in Portuguese cities. (2019) the case of used units, which reveals a clear recovery and overcoming of pre-crisis prices. The best lifestyle development (2019) City with the 3rd largest Amounts and Number of Homes Sold technological growth in in Porto Metropolitan Area Europe (2018) Amounts of sales of family accommodations No. of family accommodations sold The best 4,000,000 35,000 startup-friendly city of Europe (2018) 3,500,000 30,000 The best European 3,000,000 destination (2012, 2014 25,000 and 2017) 2,500,000 The 3rd best city to 20,000 3 invest in southwestern 2,000,000 Europe (2014/15) €10 15,000 1,500,000 No. of homes 10,000 1,000,000 500,000 5,000 0 0 2011 2017 2019 2012 2013 2015 2018 2016 2014 2010 2009 Semester ST 1 Source Savills Research analysing INE 1ST semester 2019 Number of houses Number of houses Number of houses Sales volume sold (total) sold (new) sold (used) €1.9 14 K 2 K 12 K BILLION Source Savills Research analysing INE 6 7 Porto Residential Market Report 2019 Porto Residential Market Report 2019 The ease of transport (especially the metro lines) benefited to the present day recorded the greatest decrease in the the closest municipalities and made them real alternatives to absorption time of the entire Porto MA. We also know that living within the limits of the municipality of Porto. in these municipalities the demand for new units is very The municipality of Maia and Matosinhos lead the Porto high, with special emphasis on the appearance of projects MA municipalities in which the available units are absorbed in Maia, which is outside the city centre and to the south more quickly, followed by Valongo that from the crisis peak of Matosinhos. Average Absorption Time of Units in the Market in the Municipalities of Porto MA 2013/Q3 2014/Q3 2015/Q3 2016/Q3 2017/Q3 2018/Q3 2019/Q3 35 30 25 Porto Metropolitan Area (Porto MA) 20 As is the case of the LMA, about half of Distribution of Units Planned per Municipality the total number of units under licensing in Porto MA in the period under analysis belongs to the Months city of Porto, followed by Vila Nova de Gaia and Santa Maria da Feira (to the south), 15 Matosinhos and Vila do Conde (to the north). The Porto MA is served by a transport network that makes it easy to move around with several road and rail alternatives. It also includes a tapered metro network that extends to several municipalities 10 surrounding Porto, which allows citizens to easily reach the centre of Porto and from there to the rest of the city. 5 0 Porto Vila Nova de Gaia Matosinhos Santa Maria da Feira Vila do Conde Póvoa de Varzim Gondomar Valongo Maia Espinho Santo Tirso Maia OMA Trofa Porto Oliveira de Azeméis Paredes Vale de Cambra Arouca Conde Vila do Varzim Vale de de Gaia Cambra Espinho Paredes da Feira Valongo Azeméis Average São João São João da Madeira Trofa Póvoa de Vila Nova Gondomar Oliveira de da Madeira da Santo Tirso Matosinhos Source Savills Research analysing Pipeline Imobiliário Santa Maria Source Savills Research analysing SIR 8 9 Porto Residential Market Report 2019 Porto Residential Market Report 2019 Supply Pipeline & Prices per sq m - Projection PARANHOS RAMALDE 1.100* units 540* units Projects: 74% | 26% Projects: 89% | 11% MP ALDOAR, FOZ DO DOURO E NEVOGILDE 290* units CAMPANHÃ Projects: 230* MP LORDELO DO units 61% | 39% OURO E MASSARELOS MP CEDOFEITA, MIRAGAIA, SANTO ILDEFONSO, SÃO Projects: 560* NICOLAU, SÉ E VITÓRIA BONFIM units 77% | 23% 2.450* 660* units Projects: units 59% | 41% Projects: Projects: 21% | 79% 36% | 64% T1/inferior PORTO T2 T3 T4/superior 5.830* Highest value: units €5,000 Promotion Urban Rehabilitation Projects = Buildings Projects: Lowest value: <€3,000 Units = Apartments 40% | 60% * Approximate value 10 11 Porto Residential Market Report 2019 Porto Residential Market Report 2019 Asset Deal Legal Steps, Mandatory Documents and Costs 1st STEP DOCUMENTS: IDENTIFY AND CHOOSE A PROPERTY Asset Concluded ■■ Identification of the Sellers and the Buyers; Asset off-plan (future asset) ■■ Land Registry Certificate (Certidão de Registo Predial) ■■ Certificate concerning the property from the Finance Department (Certidão de Teor Matricial); ■■ Use permit (except for buildings built before 7 August 1951) nd ■■ Energy Certificate 2 ■■ STEP Residential technical file (except for the properties built COMPLIANCE before 7th August 1951 and for the ones built between that Prior to sign a Promissory Purchase and Sale date and 30th March 2004 which have permit of use Agreement, an Anti-Money Laundering check ■■ Declaration for the payment of the property transfer tax will take place in order to fulfil the AML legal (IMT) and Proof of payment of the applicable property obligations.