Follow the journey of an American client who found their dream investment property in Setúbal. Uncover the transformative potential of repurposing abandoned spaces for new business opportunities.
Portugal has consistently ranked as a top travel destination for Americans, and this trend extends beyond tourism. In the first half of 2022, foreign investors poured a substantial 403 million euros into the residential property market in Lisbon alone. While the French led the way in terms of investment, Americans were not far behind, demonstrating their increasing interest in the housing market.
However, this surge of interest goes beyond residential properties and extends to commercial investments as well. In the first quarter of 2023, a staggering 67% of commercial real estate investments came from American investors. This represents a significant shift from just a few years ago when only 6% of Americans were involved in this market in 2016.
The growing presence of American investors in both the housing and commercial sectors underscores the attractiveness of Portugal as an investment destination. Its appeal goes beyond just tourism, offering promising opportunities for those looking to expand their portfolios and establish a foothold in this thriving market.
The trend for 2023 is toward growth, and Your Property Advisor is well aware of it. Gonçalo Roxo, co-founder of the project, said in a recent interview with Insider that "In 2020, maybe one in 10 clients would be American. Today, of those same 10 clients, maybe five will be American". This surge in interest is further exemplified by an American client from the previous year who sought the assistance of YPA in identifying the optimal property in Portugal's most desired location for investment purposes.
"The foreign investor contributes to the prosperity of our nation, stimulating business opportunities, job creation, and fostering Portugal's growth," emphasizes Rita Xara-Brasil. The client's requirements were discerned during the initial assessment meeting held in December 2021. "Initially, the objective was to locate a building or warehouse in ruins, preferably with lofty ceilings, offering versatile possibilities for renovation and ample space to accommodate multiple units for the construction of apartments, studios, and offices."
The budget was well-defined, and careful consideration had already been given to the investment locations. With a budget of 1.5 million euros allocated for the property itself and an additional investment of up to 5 million euros, which encompassed the project and renovation costs, the client aimed to invest in emerging areas that are expected to become more central in the future. These areas included Marvila, Beato, Setúbal, and Almada.
The following month, the team was already on site, visiting and assessing the possibilities of each property. "It turned out that a warehouse in a residential and urban area was the most suitable for the client, since the project had a greater chance of being realized this way", explains Rita Xara-Brasil.
The team found a warehouse in the centre of Setúbal, that was a former olive oil factory, in an area that is being completely renovated, from the driveway to the sewer system to the apartments. Setúbal is known for one of the most beautiful bays in the world and offers its visitors everything their hearts desire, and the real estate is in no way inferior. The warehouse met all the requirements of the client. It was the ideal size, multi-level and unusually bright for the time when it was built, with windows all along the facade.
In 3 months, the Sale Agreement Contract was signed, subject to several conditions due to the permits for the project, which were convened by the client's lawyers, who took all the necessary bureaucratic and permitting steps. In October, the deed was signed.
The former abandoned olive oil factory will be transformed and repurposed to create new business opportunities in Setúbal which will contribute to the economic and social development of the region.
In less than a year, Your Property Advisor has met the client's needs, ensuring at all stages the quality of service, care, transparency and delivery of the best results.