Proving that the property market is recovering from its growth trajectory before the pandemic, investment in commercial real estate reached 534 million euros in the third quarter of this year, totaling 1,100 million euros in the accumulated since January.
This is shown in the most recent analysis by the consultant Savills of the Portuguese real estate situation, which forecasts that the investment will reach 2,000 million euros by the end of this year.
The office segment has led investment since the beginning of the year, with a share of 36% of the investment made in this accumulated period, followed by hotels/tourism, with 20%. In contrast, retail has suffered more from the effects of the pandemic, and has a representativeness in the investment market of 8% in "year to date" analysis.
Foreign capital represented more than 80% of the total transactions closed in the first 9 months of the year, with a strong presence of investors from France, the United Kingdom and Spain, but the investment of Portuguese people increased, namely from investment management funds or private investors interested in offices and retail.
Savills highlights a stabilization of prime office yields at 4%, «although signs of greater pressure and the threat of compression are beginning to be noticed, which shows a growing interest from investors and a scarce offer that presents itself as potentially incapable to keep up with that increase».
On the other hand, shopping center yields raised the risk premium from 5.25% to 5.5%, but «an increase in demand for these spaces is expected, considering that the accelerated pace of the recovery of the pandemic, the return of buyers and the revival of business volumes are reducing the risk of investing in this product category».
In the logistics market, yields compressed, «the result of unprecedented levels of occupancy, fueled by the growth of online commerce. It is expected that the growth of investment volumes will continue to be pressured by the scarcity of supply», says Savills.
Alexandra Gomes, Head of Research at Savills Portugal, says that «In the final stretch of 2021, the commercial real estate market in Portugal is going through times of great dynamism and strong appetite on the part of players, in the transversality of the real estate segments, helping to foresee a robust start-up for the beginning of 2022. The market fundamentals that sustain the attractiveness of real estate investment in our country ended up being strengthened after the pandemic period».
He adds that «we continue to see the interest in implementation and expansion on the part of international occupiers, investors from all corners of the world now wishing to diversify their investment portfolios and looking to Portugal as an attractive and safe destination and the market to follow. new trends with regard to the development of alternative segments».
