Commercial real estate investment totals €1,300M

Commercial real estate investment totals €1,300M

According to the consultancy’s books, during last year the average value per transaction was 31 million euros, almost double the average of the last 16 years. Overseas capital represented 82% of the total volume invested, with its market importance lessening in comparison with the previous year.

In the year under analysis, offices were the most representative in investment activity, a total of 49% of the total invested in commercial real estate, equal to 600 million euros. Retail assets came to 45%, hotel assets 4% and the industrial sector 3%.

 

Portuguese real estate was never so valuable

Eric van Leuven, managing partner of C&W is confident that this “will be a great year once more”, because “there are more deals in the pipeline for 2017 than last year”, risking the prediction that “we might have the best January ever”.

This is helped by the fact that yields are at historically low levels.  In December 2016 the prime yields of the real estate market were at 4.90% for offices, 5% for commercial centres e 4.75% for street commerce. The industrial sector presents the greatest risk, with a yield of 6.5%.

As they have been involved in some of the most emblematic transactions of the year, Cushman & Wakefield Portugal recorded its best year ever in 2016. The consultancy began 2017 with six deals in the pipeline with a value of 300 million, which were originally intended to be closed in 2016, which did not come about.

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