This was one of the conclusions from the latest Market Update Porto, which was just presented by Cushman & Wakefield. The presentation of this study was made during the opening of the consultant’s latest office in Porto, with the presence of Porto Mayor Rui Moreira, and councilman for the Economy, Commerce and Tourism, Ricardo Valente.
The city is currently living a moment of consolidation and increase in demand. Since 2015 571 million euro were invested in the Metropolitan area, and the Porto municipality alone represented around 53% of that investment, increasing its share to 89% this year.
If during the last few years, it was the retail segment that led investments, offices and hotels were the most traded between January and September this year, representing 34% and 32% of the capital invested, respectively.
The office segment had the largest investment within the region, the sale of the Burgo building by Dos Puntos AM to Värde Partners for more than 40 million euro. But the hotel segment was the most active, registering 4 transactions and 48 million euro invested. The student residences segment should also be highlighted as it keeps its solid growth and registered the purchase of a student residence by Xior for 18 million euro.
According to Andreia Almeida, director of Research at the consultant, «through the last few years, the Porto region has registered a greater dynamic, particularly in terms of occupational activity, which has generated a greater interest from investors. It is expected that the increase in foreign investment will drive the structured real estate investment product offer, whose scarcity is currently pointed out as the biggest obstacle to the market’s consolidation in the region, to grow».
This year, the prime yields remain stable at 5% within street commerce and shopping centres, and at 6% within the office segment. The compression was only felt in the industrial segment, which remained at 6.5%.