Investors anticipate increases in office and retail yields

Investors anticipate increases in office and retail yields

This is one of the main conclusions to be drawn from the latest study from JLL «A Perspetiva do Investidor na Análise pré e pós-Covid19» (The Investor’s View in Analysing the pre and post-Covid19), which sought to understand investors’ views on the possible impacts the pandemic might have on the retail and office segments.

«If the optimistic sentiment continues to predominate amongst investors, it is a definitive proof of Portugal’s attractiveness as an investment destination, which is particularly important at a time when the pandemic imposed a global lockdown on the markets and the investors’ liquidity levels remained high. Within a context of return to normalcy, all markets will want to capture a share of that liquidity and I believe that Portugal will be extremely well positioned», defended Fernando Ferreira, Head of Capital Markets at JLL.

Nevertheless, the uncertainty brought by the current pandemic together with an expectation of reduced rents, anticipates a yield increase on both segments. Around 73% of investors believe that the office yields will increase in the short-term, whereas for retail that is the opinion of 69% of respondents.

It should be noted that during the first quarter of 2020 alone, offices attracted around 247 million euro in investment (17% of the whole) and retail 798 million euro (55% of the whole).

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