Introduction
Portugal was recently recognized as the most attractive country in the world for industrial investments, according to Savills' Nearshoring Index 2024 . This recognition comes at a crucial time for the real estate market, especially in the industrial and logistics property sector. With competitive operating costs, a strategic geographic location, and increasingly strong sustainability policies, Portugal has established itself as one of the top destinations for companies looking to expand or relocate their industrial operations.
In this article, we will explore how the Portuguese industrial real estate market is positioning itself to meet this growing demand, and why now is the right time to invest in this sector.
1. The Growth of the Industrial Real Estate Market in Portugal
In recent years, the industrial and logistics real estate market in Portugal has attracted significant attention from global investors. In 2024, this market is expected to continue to grow, driven by the trend of "nearshoring," where companies seek new locations close to their supply chains. This global movement is generating a growing demand for industrial real estate in the country, especially in strategic regions such as:
- Lisbon and Greater Lisbon: Largest logistics hub in the country, with proximity to the port of Lisbon and road connections to all of Europe.
- Porto and North of Portugal: Another important logistics center, with an increase in demand from companies in the automotive and technology sectors.
- Setúbal and Sines: Regions that offer proximity to strategic ports for transatlantic commercial operations.
The increased demand for industrial spaces is resulting in significant growth in new development projects and real estate transactions. The current estimate is that market movements could reach 400 million euros in capital and development operations in the industrial and logistics sector in 2024.
2. Factors That Make Portugal Attractive for Industrial Real Estate Investments
Portugal leads the global ranking of attractiveness for industrial investments for a number of factors that also directly benefit the industrial real estate market:
- Cost Competitive: The country offers a combination of low operating costs, which include affordable rents, cheaper energy compared to other countries in the European Union, and skilled labor at competitive prices.
- Political and Economic Stability: A stable business environment with public policies that favor foreign investment, such as tax incentives and support for sustainable development.
- Strategic Geographical Position: Portugal's location allows for a quick connection to markets in Europe, Africa and America. This geographical advantage is crucial for companies that operate under tight deadlines and need speed in the transport of goods.
- ESG Policies: With the growth in demand for sustainable business practices, Portugal has stood out for its ESG (Environmental, Social, and Corporate Governance) policies, making it even more attractive to companies that value sustainability in their operations.
3. Real Estate Opportunities in the Logistics and Industrial Sector
The industrial real estate sector in Portugal is booming, and this creates numerous opportunities for investors. With the increasing demand for new logistics centers and industrial parks, there is an increasing number of large-scale real estate developments, particularly in metropolitan areas and regions close to major ports and highways. Here are some of the key opportunities:
3.1. Development of Logistics Parks
The development of logistics parks in areas such as Greater Lisbon, Porto and Setúbal is increasing. These parks offer modern and efficient infrastructure, with easy access to transportation networks, allowing companies to optimize their logistics and distribution operations.
3.2. Requalification of Old Industrial Properties
With the growing demand for industrial spaces, many investors are looking to redevelop old industrial properties, transforming them into modern and optimized facilities. This is an opportunity for investors looking to capitalize on undervalued properties in strategic regions, renovating them to meet the current needs of the market.
3.3. Investments in Storage Infrastructure
The rise of e-commerce has driven the need for large storage spaces and distribution centers, especially near large urban centers. Investing in real estate that can be converted or utilized as urban logistics hubs is a promising strategy to meet this growing demand.
4. Why Industrial Real Estate Investment is a Solid Opportunity
The industrial real estate market offers investors a unique opportunity to earn solid returns, especially in a country like Portugal, which combines a favorable business environment with a high demand for industrial spaces. Here are some reasons why this industry is a safe bet:
- Sustained High Demand: Nearshoring and the growing need for efficient logistics keep the demand for industrial real estate high, ensuring occupancy and return on investment.
- Low Vacancy: The vacancy rate in industrial and logistics properties in Portugal has remained low, especially in metropolitan areas, which means that properties are quickly rented out.
- Long-Term Growth: With the continued expansion of industries such as e-commerce, manufacturing, and energy, the need for modern industrial infrastructure is just beginning to grow.
5. Promising Regions for Industrial Real Estate Investments
Portugal has several regions that are particularly promising for industrial real estate investments:
- Lisbon and Setúbal: The proximity to the port of Lisbon and the main road axes make these regions ideal for logistics and industrial centers.
- Porto and Braga: The North of Portugal has seen significant growth in terms of demand for industrial real estate, especially from the automotive and technology sectors.
- Sines: The port of Sines is emerging as an important hub for international trade, creating investment opportunities in logistics and industrial infrastructure.
Conclusion
The industrial real estate market in Portugal is booming, and with the country being ranked as the most attractive for industrial investments in 2024, the opportunities for real estate investors are vast. With a combination of strategic location, low operating costs, and a stable business environment, the Portuguese industrial and logistics sector offers promising returns for those looking to invest. Now is the time to take advantage of these opportunities.
Are you interested in exploring real estate investment opportunities in the industrial and logistics sector in Portugal? Talk to one of our experts today and find out how to invest in one of the most promising real estate markets in Europe!
