Portugal

CAPITAL MARKETS HEAT UP WITH THE SUMMER

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These figures are from Iberian Property Data, whose database calculated more than 250 operations for the purchase of income assets in Iberia between January and the end of August 2021, totalling an overall value of more than 12.74 billion euro. Of these, the largest share (86%) was allocated to the Spanish market, where 207 operations were identified during this period, involving approximately 10.98 billion euro. Portugal captured the remaining 14%, equivalent to around 1.76 billion euro in 46 operations concluded until August.

Capital markets speed up in July and August

Analysing the data gathered by Iberian Property over the last 18 months, there is a positive recovery of the investment volume channelled to Portugal. In the first half of 2021, the second national lockdown constrained the activity of the sector, nevertheless important portfolio transactions were closed surpassing the 1 billion euro target during those first six months of the year. The second half that followed materialized the peak of the recovery and more than 1.2 billion euros were invested in the country.

The beginning of 2022 brought new international challenges that once again threatened to place investors in a “wait-and-see” position. Altogether the total value of the 38 deals completed in the first half of 2022 reflected a y-o-y decline of 31% compared with the volume invested in the 1st semester of 2021. However, during the first six months of the year the pipeline of important deals to be concluded was extremely high anticipating a record breaker third quarter.

Confirming the predictions, from July onwards there was a clear acceleration of investment in Portugal, and, at the end of August, the 3rd quarter already recorded 9 operations and approximately 1.053 million euro invested. Therefore, with one month still to go, this was already the most dynamic quarter of the year, presenting a performance 277% above the 380 million euro traded during the 2nd quarter (22 deals) which, in turn, already represented a growth of 15% compared to the 331 million euro registered during the 1st quarter (16 operations).

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