Portugal news – Here are the Top 5 sectors driving investment in Portugal’s real estate market, according to a study by WORX Real Estate Consultants, that reveals that investments in Commercial Real Estate (CRE) in Portugal amounted to approximately 660 million euros for the first half of 2024.
Top 5 sectors driving investment in Portugal’s real estate market in 2024:
1 – The Hospitality real-estate sector
Portugal’s Hospitality sector remains the most sought-after sector for investment, accounting for 40% of the capital allocated to commercial real estate and amounting to around 270 million euros.
Among the main transactions in the sector were the sale of the Sofitel Lisboa by AccorInvest to Extendam, for 75 million euros, and the acquisition of the Amazónia hotel portfolio by the Real Hotels Group, in a transaction worth between 30 and 40 million euros.
2 – The Offices real-estate sector
The offices sector is the second main driver of growth in the commercial real-estate market in Portugal, with investment amounting to 120 million euros, that is around 20% of the allocated capital.
The main transaction in Portugal’s office real-estate sector was the sale of K Tower at Parque das Nações by Krest Real Estate Investments to Real IS A.G., for a value of over 70 million euros.
In the first half of 2024, 127,645 sq.m of office space was transacted in Greater Lisbon, spread over 82 operations. After the sharp drop in 2023, this result reflects a substantial recovery in demand for offices, with the volume of take-up in this period surpassing the total recorded in 2023.
There is a greater appetite for central areas, namely Lisbon’s Prime CBD, which saw a substantial increase in the number of real estate deals this semester, compared to the same period last year.
Prime rents in Lisbon’s office market have remained stable in all zones since the end of 2023, with Lisbon’s Prime CBD reaching €28/m²/month.
3 – The Student Residences real-estate sector
Portugal’s student residences real estate sector is attracting more investments since there is a significant increase in demand for alternative assets, and the sector attracted more than 80 million euros in the first half of 2024.
4 – The Retail real-estate sector
Portugal’s Retail real-estate sector is driven by the luxury segment that is one of the main drivers of high street commerce, as suggested by the recent entry of Italian brand Molteni&C into Portugal, with a store on Avenida da Liberdade.
On the other hand, retail parks are showing particular dynamism, not only in terms of investment, but also in terms of promotion. An example of this is the completion of Arco Retail Park in Porto with 6,600 sq. m and Retail Park Vizela in Braga with 5,700 sq. m in the first half of 2024. Two more assets are expected to be completed this year, namely Penafiel Retail Park and the second phase of Salinas Retail Park.
Retail parks, meanwhile, remain at €11.75/sq.m/month, that is above pre-pandemic values as a result of the high demand for this format.
5 – The Industrial & Logistics real-estate sector
Portugal’s Industrial & Logistics real estate sector totaled 415,556 sq. m occupied in the first half of 2024, reflecting a notable recovery in demand, evidenced by a 35% increase over the same period last year. As a result, the level of demand in the first six months of the year even exceeded the total area occupied in 2023.
The Greater Lisbon region continues to attract the lion’s share of demand, that is more than a third, with a total of 162,826 sq. m occupied. The Greater Porto region captured almost 20% of demand, with 76,104 sq. m occupied.
In the 2nd quarter of 2024, prime rents remained stable with Zone 1 in Castanheira Azambuja scoring 5.0€/sq. m/month and Zone 3 in Lisbon scoring 6.50€/sq. m/month.
#portugalnews #newsportugal #investmentnewsportugal #realestatenewsportugal #realestatemarketportugal #sectorsdrivinginvestmentinportugalsrealestatemarket #commercialrealestatemarketportugal #WORXRealEstateConsultants
Comments