According to the calculations from Cushman & Wakefield, after a record year in 2018, with 3.000 million euro invested in commercial real estate alone, 2019 is registering a less dynamic investment activity, but with far higher amounts than the average for the last decade. And, taking into account the ongoing operations, this year’s total volume might be higher than last year, according to the consultant.
The hotel segment was the most dynamic during the semester, having had the largest operation: the purchase of the Tivoli hotels portfolio by Invesco from Minor for 313 million euro. There were also 5 other deals between January and June which reached 90 million euro.
Retail represented 31% of investment and included the second highest deal of the year, the sale of LeiriaShopping by Sierra Portugal Fund to REEF for 128 million euro.
Within the office segment, with a market share of 25%, the spotlight goes to the sale of the Art’s Business Centre’s portfolio and the Fernão de Magalhães Tower by Credit Suisse to Merlin Properties for 112.5 million euro, the third highest operation of the semester.
According Marta Esteves Costa, Partner and Head of Research at C&W «the market should maintain the dynamic it showed in 2018, both in terms of occupancy and investment. Concerning the latter, although so far the amount traded is inferior yoy, it is expected that 2019 will register an investment volume in commercial real estate similar to that of 2018».
And she explains that, «according to our predictions, the transactions which are currently being negotiated, and which have a high probability of being closed until the end of the year, total around 2.000 million euro. The continued diversification of our market is also highlighted in 2019 by the more dynamic real estate segments, with the hotel segment attracting the most capital for the first time», she concludes.