July 12, 2022
Investment in income real estate reached €700M during the first half of the year
During the second quarter of the year, investment in income real estate reached amounted to 325 million euro, totaling 700 million euro for the whole year until June.
The data released by CBRE showed a positive evolution within the logistics and hospitality segments, with investments of 230 and 180 million euro respectively during the first half of the year, and investment in the office segment during the same period reached 190 million euro.
«Three months ago, expectations pointed towards a quarter with a volume of transactions higher than what it really was. However, the complexity of some of the ongoing businesses postponed their conclusion into third quarter. In July alone, CBRE plans to complete the sale of three portfolios (offices, logistics and student residences), which together represent 500 million euro», stated Cristina Arouca, Director of Research and Data Intelligence at CBRE Portugal.
Nuno Nunes, Head of Capital Markets at CBRE Portugal, said: «The context of uncertainty we live in may also be reflected in a greater perception of risk by buyers and a gap in price expectations between buyers and sellers. In fact, although we do not foresee a short-term rise in yields, we have already changed the perception we had at the beginning of the year, when we expected a yield compression in various segments».
Office occupancy during the first half of the year has already exceeded the 162.000 square meter mark reached during the 12 months of 2021. The scarcity of rental spaces within the logistics sector leads to an increase in rents throughout the country.
CBRE points towards the fact that the «accelerated recovery of tourism, in particular leisure, is also contributing to a faster-than-expected recovery within the tourist accommodation segment». Overnight stays in tourist accommodation in Porto and RevPAR in the Algarve are some of the indicators which are higher than those observed in 2019.
The investment and commercial real estate services firm also forecasted a total volume of transactions of more than EUR 3 billion in 2022, as it had already predicted at the beginning of the year, «which repositions the income real estate investment market at the level it was in before the pandemic».