Investment in commercial real estate soared in the third quarter throughout to €1.1 billion, bringing the running total so far this year to €1.9 billion.
The accumulated total is 43% above that registered for the same period in 2021, only reinforcing the “good outlook for 2022”, according to the study Market Pulse from consultants JLL.
With just one quarter to go until the end of the year, commercial real estate investment is just €100 million short of the €2 billion invested last year. “The expectations are that investment activity should exceed 2021 by around 25%, despite some downward revision of asset values in the coming months and a consequent adjustment in some prices,” states the report.
Fuelled by demand outstripping supply, the residential market has continued to be resilient in Q3 with prices continuing to climb but a plateau expected in sales. Demand is active from nationals and internationals, rapidly snapping up new offer when it comes onto the market, as seen from the growing number of new properties that are pre-reserved or bought off plan when the projects are launched.
In the offices market, take-up is currently at 293,000m2 for the first nine months of the year in Lisbon and Porto. In Lisbon, take-up has already overtaken figures for the previous record year of 2008, with the current let space at 248,000m2, with 2022 expected to be “a year without parallel” for the sector.
Retail continues to bolster its activity in a transversal way across all formats, backed up by “robust” footfall both at shopping centres and the high street. Resuming their expansion plans, brands are focused on ensuring they have shops in key market locations, facing, however, some constraints imposed by the lack of disposable offer.
Industrial and logistics
Lack of new quality offer continues to be a stumbling block to even greater growth in take-up in the first three quarters of the year. Nevertheless, it has already reached 323,000m2. The third quarter was “especially dynamic” in this sector, contributing to around 50% or 163,000m2 of accumulated take-up area for the year.
According to Pedro Lancastre, CEO of JLL Portugal, “the Portuguese real estate market continues to develop in a positive way despite a number of macroeconomic conditions, registering significant growth in practically all transactional segments, showing not only its resilience, but also because it was one of the preferred assets for investment”.