This amount, which excludes internal business (within the same group or company) is 41% higher than the volume invested in 2016, according to C&W, with an average value of €33 million per business. The year was marked by the transaction of "increasingly portfolios", and by the participation of national structures, attracting foreign capital. This capital reduced slightly to 75% of the total, with Portuguese investment reaching €440 million.
It was the industrial sector, which "never had such a heavy weight", which led the biggest business of the year, the sale of Logicor portfolio, worth €260 million, followed by the sale of Forum Coimbra and Forum Viseu, for €220 million. Also worth noting is the sale of the Entreposto Building, for €65 million, or the Marquês de Pombal Building, for €60 million.
There has to be a yield context at historical lows, but still "higher than in the rest of Europe", emphasizes Marta Esteves Costa from C&W’s Research and Consulting department. The consultant believes that there are still "very slight compressions in 2018".
2018 will continue growing
The €2,500 million that C&W accounts for in the current market pipeline are "a conservative value", according to CEO Eric van Leuven. As he explained to the journalists, the year will be marked by "much interest" from investors, "growing business, but with slow materialization.”
More activity would occur if there were new office promotions, a sector that continues to feel strong constraints on supply, which remains low and inadequate. This is because the equation continues to be more profitable when it is possible to choose for housing use. This year, 40,000 m² of offices are expected to enter the market, 50% of which are already in the pre-lease situation. In 2019, it is expected 30,000 m². Eric van Leuven sees this situation as “worrying”, ultimately even for the national economy.
The rise in interest rates could be a brake on this dynamic, but effects should only be felt in 2019. The effect of quantitative easing, which “may have an impact on the availability of capital”, will also only be visible from the 2nd half of the year.
Innovation will continue to be the watchword, namely in investment products. Hospitality, student residences, seniors or coworking spaces will be some of the trends to follow.