Portugal's real estate reform opens the door to new opportunities in commercial real estate

The "More Housing" (Mais Habitação) program

Designed to deal with the housing shortage and rising real estate prices in the country.

The plan includes a variety of steps, including:

• Regulatory relief

• Increasing the supply of public housing

• Tax benefits

The commercial space market in city centers is suffering from a significant decline in investment viability.

This is a global trend that results from a variety of macroeconomic factors and changes in the world of trade.

The most common investment strategy among real estate investors in Portugal in recent years is investing in short-term rental properties (Airbnb and others).

One of the sections of the plan in question slightly reduces the viability of this investment and makes it impossible in certain areas of the country.

Despite the difficulty resulting from the legislation, it seems that the many empty commercial spaces are the answer to this market niche.

In addition, the plan also talks about incentives and the obligation to re-glaze empty properties owned by public entities.

The combination of these legislative provisions, along with the enormous need for housing, the strong investment market in tourist real estate, and the large amount of commercial space, creates a huge vacuum in the real estate market.

In most residential areas of cities, commercial space prices are significantly lower and represent a very interesting investment opportunity.

The photos show examples of empty properties that illustrate these types of opportunities.

These properties are located in city centers, in industrial areas bordering residential neighborhoods, on the ground floors of many residential buildings, and in areas that were previously defined as commercial areas and are now empty.

One of the most interesting buildings is located in the city center of Barreiro, located on the south side of the Tagus River.

This is empty commercial space, in an excellent location in the city center, 200 meters from the riverbank, and in an urban priority area for development and population.

The area is publicly owned and can be leased for a long period at a price significantly lower than market prices.

The current size of the building is 2500 square meters, but additional areas can be added and the surrounding outdoor areas can be used. Which makes the opportunity even more attractive thanks to the strategic location of the property.

The investment value is estimated at approximately 4 million euros and is expected to yield a high current return in light of the low leasing costs.

This is a unique concept that is very suitable for the needs of the place and was built in collaboration with public entities with the aim of constituting a unique center of activity for the entire region.

This is one interesting example of a broad phenomenon that is becoming increasingly common.

For more information about this opportunity and other opportunities in the sector, you can schedule a meeting below.