Hotel portfolios will draw investors’ interest

Hotel portfolios will draw investors’ interest

Jorge Bota | Managing Partner | B. Prime

B. Prime mentioned that in its latest Prime Watch concerning this year’s first quarter, which was issued only now so that the information was updated taking into account the effects of the pandemic.

«In an atypical year we kept the analysis for which Prime Watch is recognised, but decided to add some data and comments on the impact of this abnormal situation, during the first months of 2020», said Jorge Bota, Managing Partner at B. Prime.

According to B. Prime, during the first quarter, 1.450 million euro were invested in Portuguese commercial real estate. Retail represented 60% of the investment, hotels 21% and offices 15%, according to the consultant.

The pandemic’s effect was especially felt in retail, concerning the assets’ performance, due to the imposed confinement and the shops’ shutdown. In the opposite direction, logistics grew due to the «vertiginous» rise of e-commerce, which showed the relevance of these type of assets on the distribution chain.

Office rentals continued to be marked by the pre-rental with some projects reaching the market practically fully rented. More than half of the new 44.851 sqm to enter the market this year, are practically rented.

«Despite the first quarter having been one of the best ever in the Portuguese market, starting April, everything changed and despite the interesting signs we are seeing in terms of activity recovery, it has been asymmetrical in several segments, with a greater dynamic in offices and logistics and with retail and tourism still waiting for better times», concluded Jorge Bota.

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