During this year’s first quarter, which coincided with the second lockdown period, commercial real estate investment reached 221 million euro, according to JLL’s report Market Pulse.
According to the consultant, this number is twice as much as the 90 million euro traded during the first lockdown.
Pedro Lancastre, JLL’s general manager, pointed out «a remarkable result, considering activity returned under the lockdown, which delayed many ongoing processes».
He remarked that «there was twice as much the amount traded as there had been before the lockdown, showing that, even during lockdown, investors were more confident than before and that the allure of the Portuguese market remained strong».
According to JLL, 95% of this investment was generated by foreign capital. The office segment dominated businesses and represented 70% of all amount invested, thus, possibly becoming one of the most important segments of the year.
On the other hand, the retail and hotel segments remained the most affected, representing 15% of all investment. JLL highlighted the hypermarkets and supermarkets’ dynamics as investment products.
Throughout the quarter, prime yields remained stable when compared to the end of last year, despite the historic minimum levels reached by offices (4%), high-street retail (4.5%) and logistics (5.75%).
Liquidity remains high and investors remain attracted by the Portuguese market. There is a «considerable amount» of mandates, and even within a context of more complex transactions, due to the current situation, JLL expects 2021 to be rather positive in terms of investment.