Over the next 12 months, the volume of investment on the European continent should grow about 6%; a tendency also applicable to prices and rents, the latter rising between 2 and 3%. A new contraction in yields in the order of 30 to 40 base points is also expected and, in this context, the high participation of North American capital in European markets should get smaller with a backdrop of increasing interest rates, which will be substituted by capital from Asia and the Middle East
Lisbon will be one of the main targets
The main targets of real estate investment will continue to be core markets such as Paris, Berlin, Frankfurt, London and Amsterdam, with the Portuguese capital also being well placed, equally well in the office sector as in retail.
Urban renewal will be one of the focuses of investment in the city of Lisbon, while being an alternative segment, for its competitive prices on the European scale.
According to Cushman & Wakefield, Portugal e Spain will be the most popular markets among the southern European countries, which should lead to a market quota in 2017 0f 11%, above the 10% of 2016. The good performance of the occupational market, rent increases, the growth in tourism and the growing appeal of Lisbon as a tourist destination are some of the factors which will help attract foreign investment, given that Portugal should maintain volumes of investment of €1,000 million, probably even above the 1,300 million euros transacted last year.