Despite a scarcity of assets in the Spanish real estate market, opportunist funds are still looking to complete more ‘imaginative’ deals, while in Portugal, development and tourism-related projects are generating considerable work for lawyers
There has been an unprecedented rise in both transactional and developmental activity in Portugal’s commercial real estate sector in the last 18 months. Indeed, 2015 was a record year, with commercial real estate investment totalling over €1.8bn, according to a report by BNP Paribas. And the demand for Portuguese real estate assets has remained high in 2016, with foreign investors and funds, in particular, having a strong appetite. This presents a golden opportunity for Portugal’s leading law firms, but they must expand to meet client demand, says Pedro Ferreirinha, partner in charge of the real estate and environment practice group at Vieira de Almeida (VdA).
Spain’s commercial property sector is returning to pre-crisis levels of activity, with €8.8bn invested in the country in 2015. According to a recent report by the global real estate consultant Knight Frank, this represented the highest level of investment since 2008. Though the majority of the activity is taking place in key sectors such as retail, office space and tourism, there is also expected to be growth in more niche areas such as student accommodation and elderly care.