RETAIL INVESTMENT IN PORTUGAL REACHES €400M

RETAIL INVESTMENT IN PORTUGAL REACHES €400M

According to Worx data, this retail behavior was highly driven by the purchase of Fórum Coimbra and Fórum Viseu, for €220M.

On the other hand, offices added an investment of €244M, concerning the sale of two portfolios, the acquisition of Entreposto building for €65.5M, the Edifício Central Office for €29M by Merlin Properties, or the acquisition of an old BNU’ head office by the Fundo da Segurança Social to CGD for €50M.

During this semester, it was only traded 1 hotel - Lux Park-, in the amount of €16M, and logistic platform EIPA II in the amount of 37 million.

The consultant refers that we keep looking at yield compression in Portuguese market. The yield prime of offices and shopping market settles at 5%, while street trading registers a yield of 4,75% and industrial & logistics sector a yield of 7%. All sectors record decreases of 0.25% on its prime yield, except for industry.

Regarding the level of investment activity, hotel sector fell significantly, in 87%, followed by the logistic segment, with 56% less, and offices with 36% less.

Research & Consulting department from Worx believes that we should keep looking to high liquidity and interest volumes in the Portuguese market, and for that reason the drop in the 1º semester should not discourage the market, nor be a sign of a market slowdown. «It's expected that the market may reach similar values to the ones recorded by the end of 2016», refers the consultant.

Capital Markets department from the consultant concludes that «the Development segment has aroused interest from several investors, mainly directed to promoting new spaces for offices and residential project, which present themselves as markets of high demand». 

Iberian Property logo Iberinmo logo
Iberian Property is the best platform for investment in Spain & Portugal. Created for those who seek reliable information about players and deals happening in Iberia. Through updated database, reports, market indicators and daily news, we report “Who’s Who” in Iberian Real Estate!. Iberian Property is also proud to organize the most important international real estate investors’ meeting in Iberia - Portugal Real Estate Summit!