Portuguese commercial real estate market set for record year

The Portuguese commercial real estate market is set for a record-breaking year according to property consultants Jones Lang LaSalle.

JLL has reported that in 2018 investments are expected to reach €2.5Bn and if the current pace continues could reach €3Bn.

Portugal’s economy is reportedly growing at its fastest rate since 2000 with GDP increasing by 2.7% in 2017 compared with 1.5% in 2016.

The unemployment rate fell to 7.9% in the first quarter of 2018 – the lowest since 2008. Tourism also reached a new record in 2017, totalling 12.7 million visitors, +12% on 2016.

Cushman & Wakefield have reported that shopping centres too are enjoying a bumper year with 150 deals closed in Q1 of 2018 delivering 45,000m2 of take-up; the F&B  sector accounted for 75 of these deals.

The office market in Portugal is buoyant, with unemployment decreasing, economy strengthening and increased interest from international investors. The office sector received a total investment volume of €728 million in 2017.

BNP Paribas Real Estate has reported that Lisbon’s office take-up  has reached the highest figure since 2008, totalling 166,819m2 while JLL reported more than 360,000m2 is projected for development by 2021.

A substantial proportion of the office transactions were by new companies entering Lisbon, with the technology sector being a driver for growth.

There have also been several large international companies, including Google and Amazon looking to expand in Portugal.