At the end of the first quarter of 2024, Worx Real Estate Consultants released its Q1 2024 Outlook reports. In the first quarter of the year, around 204 million euros were invested in commercial real estate, consistent with the same period of the previous year.
According to the consultancy, the investment market should remain resilient, with prospects of robust activity in the second half of the year with the effect of the long-awaited drop in interest rates. Even so, the volume of investment this year should remain in line with the volume recorded in 2023 and a slight compression of yields is expected this year.
Among the main transactions in the quarter under review, the K Tower building stands out for a value of over 70 million euros, with the office sector capturing the largest volume of investment in this period, around 38% of the capital invested. In the first few months of the year, the office sector recorded an occupancy of 73.725 sqm in Greater Lisbon, with demand quadrupling compared to the same period last year.
In this way, a notable recovery in demand for offices is expected, with an absorption volume in 2024 above the previous year, accompanied by a slight rise in rents until the end of the year.
In relation to this launch and analysis, Pedro Rutkowski, CEO of Worx, points out that "the outlook for 2024, after this start to the year, remains optimistic, albeit more moderate in terms of commercial investment. The office market is well on its way to having a remarkable year, as a result of the major operations we have seen and also those that are still in the pipeline. In the investment market, the hotel and retail sectors will continue to be the most attractive, and we are already seeing a recovery in office investment compared to 2023".
