Proof of this is the sound recovery of the investment market that has been capturing the attention of many new international investors. Similar to the amount of investment observed in the year 2015 (EUR 2 billion), the year 2017 represents a new historical landmark.
The opportunistic investment funds have given place to core or core plus investors more selective and with greater investment capacity. With prime rates of 5% and still with some compression space, for 2018 the market will begin to move towards stabilization of prime yields and continue to witness an increase of prime rent values.
The office market will continue to attract large international occupants, seeking in the cities of Lisbon or Porto, to install their shared services headquarters. In addition to the competitive prices that our market presents versus other international capitals, Portugal is recognize by the talent of our skilled workforce, the domain of the English language and the excellent relation of quality of life vs price.
The biggest concern is the lack of new, speculative and qualified offer, which can respond in useful time to the current dynamism that the office market demands.
For the retail market and with only two commercial equipment openings this year, the focus of attention turns to the high street retail that has been bringing a new life to the historical centers and for the renewals of existing shopping centers, in a wager of modernization and approximation to the consumer. Realities that will remain in 2018 and with a growing bet in the differentiation and approximation of the physical store to the digital phenomenon.
Also tourism and the phenomenon of urban rehabilitation will continue to take its role as stars in Portugal's assertion as an international investment destination.
One of the trends we have seen in 2017 and that 2018 should accentuate is a demand for development opportunities for building projects very targeted for residential, hospitality and office segments.
For 2018, Portugal will continue to be a hot-spot on the investment market.
Although investors ' concern for the inevitable rise in interest rates are on the table, investment amounts should remain on a positive ground. We will also have many portfolios of NPL's on the market, with opportunistic investors directing their attention to this type of assets.