Commercial real estate investment reaches €1,900M

Commercial real estate investment reaches €1,900M


This investment, which excludes acquisitions of houses and rehabilitation buildings, will have exceeded by 50% the €1.254 million transacted last year, state the preliminary data collected by JLL, and "projects the year 2017 to a level never before reached in Portugal", explains the consultant.

Of the approximately €1,900 million invested, about 37% relate to retail and 33% to offices. The industrial / logistical sector almost quadrupled its weight in total to 17%, leading the largest business of the year, buying Logicor's portfolio for around €250-270 million.

Also worthy of note was the purchase of Forum Coimbra and Forum Viseu (€200 to €230 million) and Vila do Conde Outlet (€130 to €140 million). And, as for offices, the sale of the Silcoge portfolio, between €140 and €160 million, and the building Entreposto, for about €65 million.

The activity was dominated by investment funds, which accounted for about 68% of the total, at a time when international investment enlarged its share in investment volume from 85% to 91%.

Pedro Lancastre, general director of JLL in Portugal, says that “2017 was a great year for the real estate market in Portugal. We are no longer talking about a path of recovery, but of expansion. In the investment and activity of occupation and sale of offices, housing and hotels, were reached business volumes and growth of values that exceed the maximum reached in the market." Therefore, he believes, "it is a sustained and sustainable growth, because the sources of demand are now much more diversified and Portugal's position in the international capital capture is not cyclical".

This director highlights that "this exceptional year for the company and for the real estate market also reflects the favorable and surprising economic environment, at a time when rating agencies have revised the Portuguese debt rating upwards. The combination of these factors has boosted economic growth, international confidence, financing and investment.”


2018 'at least' in line with 2017

The good results of 2017 show that 2018 will be equally positive for the market.  Pedro Lancastre believes that "it will be a year of great activity, which, at least, will remain in line with 2017".

This is because "the international interest in Portugal as a destination to invest, live, work or visit, will remain very strong, while the Portuguese people are also more active. It’s a trend that positively affects the demand for all types of real estate and will have an increasing geographic reach, spreading to secondary markets beyond Lisbon, Oporto, Algarve. The further liberation of funding will also help the strengthening of both investment and occupancy markets.”


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