In the first quarter of the year, property investment totalled 230 million euros, which represents a decrease of 39% compared to the same period last year. According to data from CBRE, this drop in value is due to greater caution by the market, given the current context of inflation, rising interest rates and economic and geopolitical instability.
According to the consultancy, which participated in operations that represented more than 80% of the total investment volume in the first quarter, there is a more cautious attitude by investors who expect a stabilisation and even possible adjustment of prices.
The amount recorded in the first quarter was 14% of the investment volume of the same period of 2019, something that shows that commercial real estate in Portugal "continues to be a very attractive market for national and international investors", the consultancy firm points out.
Of the total amount invested in the first three months of the year, 67% was channelled to retail assets (€153 million), 14% to the logistics sector (€33 million), 16% to office assets (€38 million) and 3% to the healthcare sector (€6 million).
83% of the capital is foreign
CBRE indicates that around 56% of transactions were carried out in the Lisbon area and 83% of the origin of investment in commercial real estate was foreign, with special emphasis on the United States of America. "Despite the volume of investment in the first quarter showing a reduction when compared to the previous year, the Portuguese real estate market has fundamentals that remain strong and that make us a country with the capacity to continue to attract foreign investment. In general, the sectors are dynamic and specifically in logistics we know that there is a latent demand for the product, only blocked by the lack of stock," said Nuno Nunes, Head of Capital Markets at CBRE Portugal.
He also said that the hotel sector "is also benefiting from a very strong occupational dynamic that is motivating many investors to move forward with acquisition operations. We continue to feel a solid interest in the operations we have underway. However, it is noticeable that in some cases there is a mismatch between the seller's expectation and the prices buyers are willing to pay. Although there is some uncertainty, we remain optimistic and believe that this adjustment will happen naturally and that interesting transactions will continue to be made for both parties."
CBRE highlights the sale of the Amália portfolio, which involves a portfolio of 44 supermarkets, as the transaction that marked the quarter. The consultancy also points out that there are some projects that will come to market in 2024, which will lead to a potentially very positive next year for the logistics sector, similar to what happened in 2022.
