Lisbon and Porto were the two European cities with the greatest potential for shared rental demand — the concept of co-living — according to a study by JLL published at the end of 2019.
In the eyes of international investors Portugal is a market of opportunities. And now, seven months later, many of the projects have not undergone any change in either interest or development, which for us is an excellent sign for our real estate and international investment market in our country.
Uhub, as an example and considered one of the largest brands for students’ halls in Europe, has one of its largest units, located in Lisbon near Colombo Shopping Centre with 340 rooms, gymnasium, social rooms and study rooms, which is about to be completed.
This market is somewhat uncertain about its future, even universities do not have their schedules set. Receiving international students as and when it is unknown, though with two more residences in Lisbon, and one in Porto, under construction, which will have nearly 500 rooms, these entrepreneurs do not get carried away by pessimism and rather believe in the market in Portugal which is another excellent sign for us.
Smart Studios Carcavelos was one of the most recent to open its activity and made available to the rental market 301 studios and co-living spaces, aimed at students, teachers and young professionals. And aims to put more than 2700 studios on the market by 2025.
In Europe there are already 23,500 beds between projects already built or under development. Co-living is a very recent reality in the world, and even more so in Portugal. Though its flexible concept to interchange the buildings to adapt to new realities, and start time and cost are reduced, is, in a way, a product that has its future guaranteed in the national and international real estate market.
Currently, there are several projects under development that come from this concept to find alternative residential solutions.
As the end of the pandemic is still in the stars, it will be the recovery time that will dictate the success of this business, and the target audience are the digital nomads, who due to the pandemic have retired to confinement in their home countries. The future of co-living will depend a lot on what will happen in the coming months in terms of vaccines and medicines against Covid-19, and whether Lisbon and Porto remain on the route of digital nomads, international students, and self-employed workers, who settle for a short time, usually in shared rental spaces.
Before the pandemic, JLL estimated a potential demand that could "reach 16,000 to 18,000 beds in Lisbon and Porto, that is, 25 times more than the current pipeline.
Probably the digital nomads will spend more time in a country, maybe six to eight months. Investors and us at Casaiberia will keep an eye on these changes!
Source: Jornal Expresso