Multinationals and Startups increasingly seek Portugal
Looking at the latest report from Colliers International, a leading real estate investment management company, you can see that the Portuguese real estate market is still solid and growing, thanks to increased demand from multinationals and startups in the country.
According to the Colliers International report, the real estate market in Lisbon and Porto is experiencing a period of optimism, especially in the office sector.
Several multinationals and startups are looking for these cities to host their relocating headquarters or departments. According to Gustavo Castro, head of Research at Colliers International in Portugal, tourism growth was primarily responsible for increasing investor interest in these cities. It has enhanced infrastructure, animation and quality of life, increasing the ability to retain and attract talent at acceptable costs in the European landscape.
As the supply of the corporate real estate market could not keep up with demand, coworking spaces increased in the cities of Lisbon and Porto in order to combat scarcity. Lisbon is home to the largest concentration, with nearly 60000 m² spread across 81 coworking centers. Porto is still a small market, with about 15000 m². Although compared to Amsterdam, London and Warsaw, the number of coworking centers is much lower, but it is close to the average of Europe, Middle East and Africa and at lower prices than those in these regions (15% and 20% ).
Brexit effects on the European market
Brexit has had effects on European investment, which has declined again (by around 15%) during the first half of 2019. Predictably, the UK is leading the fall, closely followed by Ireland, Germany and France. But in spite of everything, London remains the largest European investment market, with Paris in second place.
Sweden, Finland, Norway and Russia improved their performance, as did Spain, up 40% from the previous year
In Portugal, the United Kingdom is the fourth largest market to which the country exports goods and services, and which receives thousands of Portuguese workers and investors. According to the Portuguese Business Confederation (CIP), during the Brexit transition period, it is anticipated that the potential effects that will fall on the Portuguese economy and companies are:
- Reductions in Portuguese exports to the United Kingdom between -1.1% and -4.5%;
- Reductions in foreign direct investment (FDI) flows to Portugal between -0.5% and -1.9%;
- Emigrant remittance reductions between -0.8% to -3.2%.
If you would like to know more about how Portuguese visa startup works, read the Lamares, Capela & Associados blog.
