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Portugal: Real estate investment should come close to €2.5 billion in 2020
31 January 2020 | Susana Correia

After two consecutive years of surpassing the 3 billion euro barrier, expectation is that, despite a slight drop, 2020 will again be an historical year in terms of real estate activity in Portugal, with amounts traded of around 2.500 million euro, anticipates JLL.

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The number was advanced by Fernando Ferreira, head of Capital Markets at JLL Portugal, during the press meeting called by the consultant, during which were advanced those that are, according to its experts, the broad outlines of the Portuguese real estate in 2020.

After the 3.240 million euro traded during the year that has just finished, and taking into account the already high operations pipeline, «we estimate that in 2020 the real estate investment volume will not be below 2.500 million euro», advanced Fernando Ferreira. «But, for that to happen, both the assets and portfolios traded will have to be large», he highlighted.

According to the data from JLL, in 2020 the alternative assets, which include amongst others the student residences, were one of the rising stars in our country, with 18% of investment. A trend in line with what is already taking place abroad, unlike what happened with retail, which, despite dropping in terms of investment share internationally, remained leader in Portugal during 2019, with 29% of investment, noted research director, Maria Empis. Nevertheless, the gap when compared to the office segment kept shrinking, with the latter guaranteeing 27% of investment, and hotels kept rising, with 17%, equivalent to 550 million euro guaranteed by the trade of 11 assets, added Karina Simões, head of Hotels & Hospitality.

Hotels should be one of the segments which will increase its investment share the most in 2020, considered the experts. Demand for these type of assets keeps increasing, leading to a yield compression and to a wider geographical dispersion of demand.

Regarding the coming months, Fernando Ferreira, considers that we will see «a great bet from investors in Porto», which will receive players with increasingly more diversified risk profiles, from value-add to core+ and, step by step, also very core investors, such as insurance companies. In the same way, «alternative segments will remain on the investors’ agenda», considered Fernando Ferreira, concluding that «we are very optimistic concerning the next few years».