24 June 2020
Investors anticipate increases in office and retail yields
Vida Imobiliária

Investors in the Portuguese real estate market remain optimistic. Regarding market indicators, yields in offices and retail are expected to rise.

This is one of the main conclusions of the most recent JLL study called "The Investors’ Perspective in Pre- and Post-Covid Analysis 19”, which sought to understand investors' perspective regarding the possible impacts of the pandemic on retail and office real estate as investment assets.

"If optimism continues to prevail among investors, it is a clear proof of Portugal's attractiveness as an investment destination, which is especially important at a time when the pandemic imposed a global brake on the markets and when the liquidity levels of investors remain high. In the context of returning to normality, all markets will want to go to the game to capture a slice of that liquidity and I believe that Portugal will be extremely well-positioned”, states Fernando Ferreira, Head of Capital Markets at JLL.

Even so, the uncertainty brought about by the current pandemic associated with an expectation of downward adjustment in incomes anticipates an increase in yields in both segments. About 73% of investors believe that office yields will increase in the short term, while in retail this is the opinion of 69% of respondents.

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

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