The Portuguese commercial property investment market attracted 765 million euros in the first half of this year, according to Savills, down 8% on the same period last year.
According to the consultancy, 37 transactions were closed, in line with the first half of 2022, with the performance of the tourism sector (Hospitality) standing out, which totalled 273 million euros invested (39% of the total). Retail also stood out, with 263 million euros and 38 per cent of the total.
The second quarter was stronger in terms of investment volume, and stood out with a 77 per cent increase in investment volume compared to the previous quarter. Even so, Savills emphasises that half of the investment made in these three months relates to the sale of the Dom Pedro hotel portfolio, for around 250 million euros, to the British management company Arrow Global.
Paulo Silva, Head of Country at Savills Portugal, analyses that "the market fundamentals that governed the first 6 months of the year are likely to remain in place until the end of 2023, with rising interest rates continuing to exert greater pressure on investors' return expectations, generating greater delay in decision-making processes".
Even so, according to the expert, "the market continues to see high liquidity for investment in the property sector. Office, industrial and logistics assets remain classes of interest for investors, but the lack of core product and sellers' expectations limits the closing of transactions in these markets."
On the other hand, "value-add" and "development" assets - the latter geared towards the development of residential, alternative (Operational Capital Markets) and hotel projects - remain very attractive to investors," points out Paulo Silva.
