Jan. 14, 2022
Real estate investment totals €2,200M in 2021
Investment in commercial real estate in Portugal totaled 2,200 million euros in 2021, according to CBRE's accounts. The volume was lower than the previous year but, even so, it is the 5th best ever in the Portuguese market.
According to the consultant, “despite the pandemic and the various associated restrictions and uncertainties, the dynamics seen in the last year are very positive”. Not only were several high-value portfolios transacted, but more than 80 transactions were also recorded, a number only surpassed in 2018 and 2019.
In the first half, due to the second confinement, the investment market totaled around 500 million euros, but it was much more active in the second half of the year. The country remained attractive as an investment destination and several international players entered, namely in 6 of the biggest deals of the year, such as the French Tikehau and Icade Santé, the North Americans of Jamestown, Tishman Speyer and Sixth Street, and the Spaniards of Azora. In total, ten investors invested in the country for the first time.
“We saw a high level of interest in the operations we launched in 2021. In some, we received more than ten proposals. If we considered all these unrealized investment intentions, we would triple the volume of investment recorded in 2021”, says Francisco Horta e Costa, general director of CBRE in Portugal.
The consultancy participated in more than 50% of the volume of transactions and in 6 of the 10 largest deals closed last year, namely the purchase of Fundo Soluções Arrendamento and Fundo Arrendamento Mais, by Tikehau and Albatross; Fund Saudeinveste, by Icade Santé, Tivoli Marina Vilamoura and Tivoli Carvoeiro, by Azora, or by Portfolio Navigator, which includes 7 office buildings and 1 land, by the Castel group, in addition to the purchase of the Entreposto Building by Jamestown or the WPP by Tishman Speyer.
40% of the amount invested in commercial real estate in 2021 was allocated to the office market, 22% to residential/rental and 15% to hotels.
For the first time, health assets weighed 12% of the total, a record. Nuno Nunes, director of the Investment area at CBRE, highlights the sale of Fundo Saudeinveste by Fidelidade to Icade Santé: «this process confirmed the appetite of investors for assets with operational risk, generally associated with contracts of longer duration and higher rates of return to traditional investment asset classes and with extremely solid market fundamentals».
Assets with an operating component will remain attractive
In 2022, CBRE expects the volume of investment to rise by 50% compared to 2021, putting the market back at the level of 3,000 million euros.
According to Nuno Nunes, «we will see an increasing weight of investment in assets with a high operating component, such as health units, residences for seniors and student residences, in addition to hotels».
On the other hand, «an increase in the volume of transactions of logistics properties is also expected, as the scarcity of this type of property, available for sale, will be reflected in an increase in forward funding and forward purchase businesses, that is, before completion of work on the buildings».
The specialist adds that «the offices, despite doubts regarding the future model of work, will continue to be an asset class with a lot of liquidity and interest from investors».