240 million were invested in the Portuguese commercial real estate in the first quarter, according to the first Outlook Q1 2023 reports from Worx Real Estate Consultants. In an analysis of the commercial real estate investment market and the office market in Lisbon, the consultancy estimates that the Portuguese economy will grow over the next three years, in line with the average of the last five years, 1.9% according to the Bank of Portugal.
The main negative risks for the activity include the impact of the normalisation of monetary policy, increased friction in financial markets and the escalation of the conflict in Ukraine.
Between January and March of this year, a supermarket portfolio worth 150 million euros stands out. According to Worx, the "wait-and-see approach for investors has been confirmed and capital raising is diminishing, with an expected impact on the volume of investment expected by the end of the year",
The consultancy adds that the market "is gradually moving towards a more buyer's market, with investors needing to define their return expectations in order to reach an agreement with sellers on the price 'ceiling', as well as diversify their financing options to get deals done".
19.900 sqm of offices transacted in Greater Lisbon
19,900 square metres of offices were transacted in Greater Lisbon, until March. Office take-up is expected to slow down in 2023 after reaching a historic peak in 2022, even so maintaining "a good level of demand above the average of the last 5 years based on the entry of new companies into the market and the expansion of flex offices", Worx anticipates.
The consultancy also anticipates that macroeconomic forces will have an impact on the office market, but with a time lag and a reduced impact compared to other sectors.
Pedro Rutkowski, CEO of Worx, clarifies that "the start of 2023 allows us to look to the future with optimism, despite the challenging moment we are going through. The office market continues to show its resilience and in terms of the investment market we highlight that some good opportunities are emerging in alternative sectors, such as healthcare and living, which include assets such as hospitals, senior residences or student residences".
He also highlights "Data centres stand out among the sectors of alternative assets. These are some of the segments that are currently consolidating in the national market, and which have a lot of growth potential by 2023, since they are assets that represent long-term contracts and stable profitability.
