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Investment should surpass 2018’s record this year
25 September 2019 | Ana Tavares

The nearly 40 operations under negotiation might raise the volume of commercial real estate investment in Portugal to amounts above the record 3.000 million euro registered in 2018.

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The estimate is from the latest Market Beat Portugal Outono 2019 (Fall 2019), from Cushman & Wakefield, according to which the amount traded between January and August was set at around 1.600 million euro. This represents a 14% drop yoy, but the consultant guarantees that «there are good prospects until the close of 2019. There are currently around 40 operations on the later stages of negotiation which represent a total investment of around 1.500 million euro. If these operations are closed by the end of 2019, Portugal will reach a new historic high in commercial real estate investment».

Eric van Leuven, Cushman & Wakefield’s general manager for Portugal, commented in a release that «regardless of the challenges the international economy has been facing and which affect the Portuguese economy mainly through its impact within the foreign demand, the real estate market has evolved in a positive way. The high levels of liquidity which are more and more allocated to the real estate market, should remain stable, in the mid-term, taking into account the recent announcements which point towards maintaining the European Central Bank’s expansionist monetary policy».

Van Leuven adds that «Portugal’s attractiveness towards international investors is right now very clear, motivated by an active occupancy market with a potential to grow, as well as a solid growing economy».

Up until August, retail and offices were the segments which concentrated the largest share of investment, 34% and 33% respectively, but it is the hotel segment that stands out for having been responsible for 27% of the whole volume of investment, with a total 418 million euro, including the year’s largest operation – the sale of Tivoli’s portfolio to Ivesco for 313 million euro. Foreign investors represented 89% of the capital invested, with the German investors representing 43% of the whole.

C&W also highlighted the increased interest in alternative assets’ investment, of which Xior’s acquisition of a student residence portfolio in Lisbon and Porto for 28 million euro is an example.