The preliminary figures were advanced by consultant JLL, which further explained that this drop is justified by the market’s lockdown caused by the new coronavirus, which postponed several operations.
The office segment is the one which had the highest volume during the second quarter, with investment surpassing 150 million euro. Logistic came in second place with around 50 million euro invested and the retail segment is, along with the hotel segment, the most impacted by the pandemic.
According to JLL, there were no great operations during the second quarter, but ongoing opportunities were identified, which will be concluded during the third quarter. These are focused mainly in supermarkets, retail parks and defensive assets.
In general, the consultant forecasts that investment aggregated during the first 6 months of the year will be established at 2.500 million euro, which represents a 15% drop yoy. Nevertheless, the investment decrease is expected to be limited to the first semester only.
In terms of prime yields, the logistic segment remained resilient, since its yield remained stable. In terms of the office and retail segments, the prime yields registered a slight increase of 10% up until the end of the second quarter. Faced with the possibility of a future decompression of the yields, especially within retail, some investors may take the opportunity to enter the market.
In terms of location, the consultant expects greater resilience from the more prime locations, whereas the secondary locations will suffer a greater impact. This should be a general trend for all real estate segments.