According to the second edition of 2018 of the Portuguese Real Estate Investment Survey, prepared by the consultant, 54% of agents will bet on the investment, while 23% will focus on portfolio management and 23% on the disposal of assets. Over the next 3 months, is expected a higher stability of the profitability rates.
According to Deloitte, core assets will be the main target of entities that want to invest in the next months (46%), given that 56% of surveyed expects to increase their portfolio by more than 10%. The value added and opportunistic deal strategies, pointed out by 31% and 8% of the surveyed, are losing importance.
Jorge Marrão, Partner and leader of Deloitte Real Estate, explains that "this quarter, Core Assets are the top of mind of many investors. They are clearly the lowest-risk, more stable income assets, with high rating clients in better locations. At the same time, these assets have a higher level of maintenance. Its valuation is lower, with the counterpart of a stable cash flow”.
He also says that "investors' attitude is to preserve capital with a lower risk compared to other alternative offers. Their liquidity is also higher. The big question is whether investors are aware of the risks related to Core assets and whether they can adapt their return and growth."
In the next 12 months, investors should focus on the office and hospitality segments, which represent 54% of the answers. The Bank will be the main financier (69%), followed by the Pension Funds and Funds of Funds, with 38% each.
Investor origins remain diversified, but Europe should represent most of the capital invested (62%), followed by the United States (54%) or Asia and the Middle East (31%).
The surveyed also expect an increase in the volume and prices of transactions in the hotel (77%), commerce and services (69%), industrial (62%) and residential (61%) sectors.