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Investment & Companies

Investors intend to invest seven billion in real estate market in Portugal

Investors intend to invest seven billion in real estate market in Portugal
Jornal de Negócios · 08 Jun 2020

There are more than seven billion euros available from investors to buy commercial real estate on the Portuguese market. Investors also have close to three billion euros in assets to sell in the "near future", reveals a survey carried out by Cushman & Wakefield. 

According to a survey by the real estate consultant with 53 investors, including investment funds, "family offices", real estate managers, and insurance companies, investment intentions in the national market remain high.

Within commercial real estate, student offices and homes remain attractive assets, but the biggest increases in demand are in logistics, residential income, and the health sector. These are the sectors where the majority of respondents anticipate that occupational activity will return within three months. In the remaining sectors, investors' forecasts are for a slower recovery, particularly in retail and hospitality.

The vast majority of respondents (83%) predict that the investment market will resume pre-COVID-19 activity and price levels over the next 18 months. Estimating that the reduction in prices will be more pronounced in retail and hospitality. Half the investors, in fact, anticipate the recovery of the commercial real estate market within six months.

87% of investors who responded to the survey report that they studied investment opportunities during the containment period.

Regarding the intentions of amounts to invest, 61% indicate having up to 100 million euros available, 22% refer to 100 to 200 million, 10% place the range between 200 and 500 million euros and 8% above 500 million.

As for the intention to sell assets, 87% intend to sell up to 100 million euros, 8% between 100 and 200 million and 5% between 200 and 500 million euros.

Almost half (47%) of respondents say they have not changed their investment strategy due to the pandemic, while 31% say they have changed the investment risk profile, and 22% say they have changed the strategy in terms of intended asset classes.

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