With the level of activity keeping above the annual average determined during the last decade accumulated over the first nine months (with the exception of 2007 and 2015, record years), the consultant is confident that the volume of invested capital will rise in the final stretch of the year.
The estimates are in order to reach “a total value of transactions in 2016 close to 1,800 million euros last year”. “Because”, observes Fernando Ferreira, Head of Capital Markets da JLL, “national commercial real estate is in a good position to attract investment, with solid indicators at occupational activity level, and attractive returns compared to other kinds of assets; low volatility and highly interesting opportunities” he explains. ‘Furthermore”, he emphasizes, “the national economy is developing more favourably than expected and the international situation is reasonably stabilised”.
On looking at different investor profiles, investment funds are today the most active in the Portuguese market, being responsible for over half of the volume of transactions (500 million), followed by private investors and family offices, with 30%, and the REITS, with due prominence to the Spanish SOCIMI, amounting to 11% of the total.
Offices and retail were the most attractive assets, totalling 85% of the total invested in the country (42%) each, about 826 million euros. Stable compared to the previous trimester, yields continue to compress in relation to the counterpart period although they are already close to levels registered in 2007. In Lisbon, yields fixed at around 5% for street-based commerce, followed by offices in the Prime CBD and shopping centres, which round up to 5.25% and 5.5% respectively. The highest yields of the capital market were calculated for the office market of the Corredor Oeste (7.75%).