Previous Next
Foreign investors responsible for 87% of retail investment in Portugal
15 October 2019 | Ana Tavares

Foreign investors were responsible for 87% of the total amount traded within the Portuguese retail real estate market during this year’s first semester.

Foto

This is one of the conclusions from the biannual study developed and presented by B. Prime at Expo Real this month. The report Prime Watch shows that the national investors’ quota is increasing, representing now 13% of the total investment, but foreign investment continues being decisive.

According to the consultant, American investors were the most active during this period, since they carried out the largest hotel acquisition in Portugal, ever - the one concerning the acquisition of Tivoli hotels portfolio worth 313 million euro.

With the yield compression, especially within the street commerce and logistic segments, many investors are betting on diversifying the risk on their portfolios, and are now more receptive towards alternative projects and secondary locations, so as to improve profitability. According to the consultant, this trend «is the basis for the growth in terms of co-working, co-living, student and senior residences which have been thriving within the national market».

This year, B. Prime estimates that investment in retail will not surpass the volume registered last year, but it should still represent around 2.000 million euro. Jorge Bota, Managing Partner at B. Prime, anticipates that «right now the cycle is reaching a degree of maturity, which leads us to believe the volume of investment will stabilize».

He also commented that «the real estate market has been an excellent bet for investors who seek alternatives to the negative interest rates which will remain negative, at least on the short term». He further pointed out that «practically all Portuguese profitable assets located in prime areas, changed owners in these last few months, which shows the attractiveness of our market, which in 2018 registered the largest trade volume ever».