Real estate investment in Portugal has already surpassed that of 2016

Between January and October 2017, close to 1,500 million euros were traded in commercial real estate investment in Portugal, distributed by almost 40 investment businesses and with a foreign capital weight that exceeds 80%, it is the second highest value that exists registration in Portugal.

 

According to the latest report by Cushman & Wakefield (C & W), real estate investment in the commercial sector in Portugal surpassed already in October the volume registered in all the year 2016. The dynamics of the national investment market throughout this year was mainly motivated by the activity of international investors, whose interest in the Portuguese real estate market was confirmed and accentuated throughout 2017.

 

"The increasing flow of capital allocated to the real estate sector on a global scale, which has been putting pressure on the market with record levels of liquidity, coupled with the excellent quality / price ratio of assets in Portugal are some of the factors that motivate investment in our country. The very positive evolution of the healthy and growing economy and occupational markets also favor the attractiveness of national real estate assets, "the statement said.

 

C & W also reveals that this figure is already 15% higher than the volume traded in 2016, in the order of 1,300 million euros and that it was the second highest figure in Portugal. The study also indicates that the distribution of capital by the different real estate sectors was influenced by the largest business to date, the acquisition of Blackstone´s logistics portfolio by the Chinese of CIC, giving more than 20% of investment allocation to the industrial sector. The remaining capital was destined to almost all retail assets (40%) and offices (37%), the allocation to the hotel sector was residual, in the order of 2%.

 

The profile of investment operations has been changing significantly since the start of the market resumption in 2014; the origin of capital is much more diversified in geographical terms and the type of investor, and the portfolio of assets is much more frequent.

 

This trend is clear in the profile of operations in 2017, this year the volume of capital originating in China and South Africa accounted for more than 30% of the total, and in the past investors of these nationalities were virtually nonexistent in the domestic market.

 

Also with regard to the type of operation, the market change is notorious, the option to market asset portfolios is increasingly frequent, and to date the 2 largest investment businesses in 2017 correspond to asset portfolios: the already Logicor´s acquisition of Logicor´s portfolio of logistical assets by CIC´s Chinese, involving a volume of about 260 million euros; and the sale by CBRE GI of the Forum Coimbra and Forum Viseu shopping centers to the South Africans of Green Bay for a value of 220 million euros.

 

In this year 2017 will very possibly be reached a new historical record in terms of real estate investment in Portugal. Taking into account operations currently in the advanced stage of trading, Cushman & Wakefield´s estimate for the investment volume in the 12 months of the year exceeds 2 billion euros, representing a growth over 2016 higher than 60%. Considering a longer time horizon, and assessing the volume of investment implicit in a very significant sample of investment assets currently in the market, the current pipeline value is over 3 billion euros.

Source: http://www.diarioimobiliario.pt