Special focus: Real estate
Pedroso, a partner at Morais
Leitão, Galvão Teles, Soares da
Silva & Associados in Lisbon.
“The vacancy rate in offices is
still high, the higher demand
last year and this year has not
increased the rents – the increase
of hotels in Lisbon and Oporto is
enormous and there is a risk of
the offer being higher than the
demand.”
Ferreirinha expands on this
point, claiming the biggest
concern for investors in the
retail and office sectors is the
performance of the economy
and the capacity of tenants to
pay their rent. Meanwhile, the
main challenge for developers is
the optimisation of the “time to
market” of their products.
In Spain, uncertainty
regarding the result of this
year’s parliamentary general
elections has not helped investor
confidence. In addition, anxiety
tech logistics spaces. Finally,
over the shortage of good assets
shopping centres must be
and the rising prices of assets
is expected
to limit
opportunities
in the market.
Most investment funds are
“I believe that
looking for yielding assets, not
competition
only prime assets in Madrid and
has become
tougher in
Barcelona, but also assets in
the last two
secondary locations.
years, and
Diego Armero
clients must
Uría Menéndez
now find their
own niche
to be able to
still find true
“repackaged” in terms of tenants
opportunities,” Alcocer adds.
and uses.”
Gómez has further concerns:
The real estate market may
“Office occupiers, for instance,
now have reached pre-recession
demand more efficient spaces
levels but – after the painful
since many workers work
crash in 2008 and the effects
remotely, but in turn require
on commercial and residential
some new common areas for
property – lawyers know not to
leisure and teamwork. Online
take anything for granted.
sellers demand new high-
“
”
Real estate market boosted by deals in tourism and
retail sectors
Real estate investors from around the
world targeted opportunities in Portugal
in the recent months, making this year
one of the best for some time, according
to Nuno Sá Carvalho, partner responsible
for the real estate practice at Cuatrecasas,
Gonçalves Pereira in Lisbon. “During the
current year, very significant real estate
transactions were closed in sectors such
as tourism, retail and offices,” he says.
“Important international players from
the real estate and tourism sectors have
recently turned their attention to Portugal
as they are seeking alternative markets for
their investments.”
Sá Carvalho says this trend gave rise to
“impressive and remarkable changes” in
the Portuguese real estate sector including
the arrival of a wide range of investors
not only in terms of their geographic
origin – Europe, the US, Thailand, China,
the Middle East, Angola, Mozambique
and Brazil – but also in terms of their
investment profiles: foreign investment
www.iberianlawyer.com
funds, venture capital funds, family offices
and individual investors.
Sá Carvalho points out that the
boom – in part helped by the ‘Golden
Visa’ programme and the non-habitual
resident tax regime – has revitalised the
real estate market and created significant
opportunities for law firms. As examples,
he cites matters relating to urban leases,
licensing, town planning and the
rehabilitation of old buildings.
“In law firms like ours, the most relevant
work normally consists of advice on the sale
and purchase of real estate portfolios, the
development of real estate projects, and the
restructuring of distressed assets as these
transactions require specific skills and the
involvement of professionals with different
areas of expertise,” he explains. However,
Sá Carvalho adds that investors’ main
challenge now is being able to find new
business opportunities, which often involve
“going outside of their comfort zone with
more aggressive risk profiles.
Nuno Sá Carvalho
September / October 2015 • IBERIAN LAWYER • 55