Savills Portugal affirms that our country is “among the most desirable markets for investment in logistics, along with countries such as France, Germany, Spain and Italy, and is becoming increasingly established as a destination for cross-border logistics operators to serve the Iberian Peninsula and European markets”.
Investment in the commercial real estate sector amounted to 1.1 billion euros in the third quarter and the portfolio as of September amounted to 1.9 billion euros in Portugal, Savills Portugal revealed on Monday.
“The commercial real estate investment market registered a very strong third quarter, with an accumulated value -until the end of September- of around 1,900 million euros”, affirms the company, which highlights that “the industrial and logistics markets share the top of the table with the office sector, since these two sectors represent more than 1,000 million euros invested at the end of the third quarter” of this year.
Portugal is “among the most sought-after markets for investment in logistics, along with countries such as France, Germany, Spain and Italy, and it is becoming increasingly established as a destination for cross-border logistics operators to serve the Iberian and European markets. ”
In fact, the “rounding up” trend and the potential of the Portuguese market to attract investment for industrialization “contribute to a greater commitment to this sector by operators and investors”, he continues.
The office sector represents, in cumulative volume up to September, 546 million euros.
“Spain, the US and the United Kingdom were the nationalities that contributed the most investment, with a total weight of 54%”, with “Portuguese investors adding a total investment volume of around 234 million euros”.
Due to “a fundamental change in the macroeconomic climate, in particular the increase in interest rates, we expect a slowdown in the number of transactions until expectations between sellers and buyers balance again”, Savills Portugal “Capital Markets Director” Alberto Henriques says in a statement.
He concludes: “However, Portugal is in a very privileged position for investment, as it continues to be a destination for attracting talent, with potential for income growth and strong occupancy pressure in various sectors, a situation that should mitigate the expected slowdown in the market. “
The third quarter of this year is “the strongest in history, with a total absorption of 79,569 m2 in Lisbon” and “to date, 162 operations carried out in the capital are responsible for a total absorption of close to 250,000 m2, a 20% higher than the highest value recorded in the last five years and 6.5% higher than the record value of 2008, which makes 2022 a historic year for the sector”, says Savills.
Commercial Real Estate Likewise, the Porto office market “has a very positive behavior throughout the year, already above the contracting volumes observed in the same periods of 2019, 2020 and 2021”.