If, on the one hand there seems to be some apprehension in the commercial real estate market on the eurozone, on the other hand, Portugal and Spain seem to be relatively optimistic, having reached at the end of 2018, the highest quarterly investment demand increase in the eurozone, reveals the Iberian Commercial Property Monitor, compiled by RICS.
However, «there are some risks in the future», mentioned Francisco Rocha Antunes, RICS’ Chairman of the Board, during the report’s presentation, on January 25th, in Porto. The high levels of debt which still persist in Portugal and Spain, are concerning for the specialist who notes that «the deleveraging will remain in the wind’s favour, and both economies are vulnerable to potential future economic shocks» he said, adding that «any new escalation in global tensions or Brexit have the potential to create a less favourable economic climate which will affect the whole of the eurozone across the board».
Lisbon, «a star» among European investment destinations
Madrid and Barcelona, consolidated investment destinations, are joined by Lisbon «the European star of the retail market», commented Francisco Rocha Antunes, explaining that «in Lisbon, the prime office and retail markets exhibit the strongest expectations».
Porto has the largest office pipeline in the country
Porto continues at a unique pace, which in the last four years registered a significant expansion in different segments: housing, hotels, commercial, industrial not a single one was forgotten.
«Porto currently has the largest office development pipeline in the country», with about 170.000 sqm in new spaces, mentioned Filipe Lopes, from Cushman & Wakefield. However, out of the total amount of scheduled projects, almost half are already fully or partially occupied. This dynamic in offer and demand accompanied by a 4% reduction from 7.3% on the office vacancy rate in the Greater Porto, last year, «reflect the huge capacity to attract investors both foreign and domestic», commented Ricardo Valente, councilman in charge of Economy, Tourism and Commerce at Porto City Hall.
To close this presentation, the debate which gathered António Gil Machado, director at Vida Imobiliária and Iberian Property, Rui Ávila, from Grupo Ferreira, Paulo Silva, from Savillis, and Filipe Lopes, from C&W, was marked by a sense of optimism, although with caution. In 2019, more investors are expected, attracted by prices and yields, however «we are influenced by what arrives from abroad, and investment in Portugal is mainly foreign and if this investment is shaken we will suffer the repercussions», mentioned Paulo Silva.