Portuguese property market generates 12.1% return

Portuguese property market generates 12.1% return

This value is in line with the annual results by the IPD® Real Estate Investment Index, which has been measuring the property investment performance in Portugal since 2000. This is one of the best performances registered by the market in the past sixteen years (the highest result was 13.7% in 2002) as well as within the global context, confirming that Portuguese real estate is presenting a solid evolution.

The Portuguese index is clearly one of the less volatile among all of the world markets we analyse”, mentions Luís Francisco, Senior Associate of MSCI, adding that “in 2015, the Portuguese index had one of the best performances and is even in the top 10 of the IPD/MSCI indexes”, which, in his opinion, “confirms that Portugal is clearly positioned as an attractive market”.

And from the investor perspective, the perception that the market remains promising seems to dominate. During the public presentation of the results of this index, Daniel Galvéz, head de RE Asset Management Iberia of Deutsche Asset Management, claimed that “2016 will be a good year for Portugal, maintaining the growth course initiated in 2015”. Rodrigo Vázquez, Head of Research Spain & Portugal of CBRE Global, considers, in turn, that Portugal has interesting opportunities, especially in the retail segment. “I believe that retail, not just in shopping centres, but high street retail as well, will be extremely promising sectors for investing in 2016”, he states. In the opinion of Daniel Galvéz, this segment in Portugal is significantly more attractive to investment than Spain, “because there is still product available for purchase”, although he warns that “factors such as take-up” must be taken into account.

 

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