Urban rehabilitation rising in Avenidas Novas, Lisbon
This trend has started in the historic areas and its expanding to other areas which have great potential
Urban rehabilitation has grown significantly in Lisbon, particularly in Avenidas Novas. This was the area with the highest increase in offer prices of apartments integrated in rehabilitation projects in the last two years, with a rise of 9.8% to 6056 euros per square meter.
Avenidas Novas are increasingly an investment destination for residential rehabilitation, making available 14% of the current commercial offer (10% in 2017). These conclusions were taken from this year's edition of the "Rehabilitation for Residential Use in Lisbon" study, which results from a partnership between Prime Yield and DLA Piper.
"The investment in rehabilitation projects for residential use continues to show a high dynamism in Lisbon, with the prices of the apartments integrated in this type of business showing growth in all areas analyzed, while the investment tends to present a distribution each more balanced between different zones, "Prime Yield said in a statement.
According to this study, the main residential rehabilitation investment area in the city of Lisbon continues to be the Baixa-Chiado-Avenida da Liberdade (historical center) axis, which concentrates 60% of the offer for sale. However, this area has less weight compared to 2017, when it was destined for 71% of the supply, which shows a tendency of greater dispersion of supply for the other three zones, which increased their quotas as an investment destination.
The largest increases in urban rehabilitation occurred in Avenidas Novas (from 10% in 2017 to 14% in 2018), in the Arroios-São Vicente-Penha area of France (from 10% in 2017 to 15% in 2018) and in zone of Estrela-Campo de Ourique (from 9% in 2017 to 11% in 2018).
"Rehabilitation has started in the historical areas and it is normal that with the consolidation of the market, the number of opportunities in this zone will be more limited and investors will begin to widen their focus to other areas with potential," concludes Nelson Rêgo, CEO of Prime Yield.
Construction and Real Estate
The construction sector in Portugal is growing thanks mostly to the investment in Real Estate: as it develops, the construction follow the positive trend.
Portugal is considered one of the best countries to invest
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