Property index to -0.3%
The total return on real estate investment in terms of revenues from assets fell into negative terrain in the Portuguese market in 2020.
The Annual MSCI Portugal Real Estate Index fell to -0.3% according to its data presented on Wednesday which reveals the effects of the pandemic on the sector and, in particular how the pandemic damaged the retail sector which represented over 56% of the sample surveyed.
Particularly hard-hit were Portugal’s shopping centres which will finally open their doors to the public again this month.
The Portuguese Shopping Centres Association (APCC) is working on a strategy to counter online commerce and is being spearheaded by overseas multinational entities that manage shopping centres.
At the same time, it has calling on all those involved in the sector, as well as the government, to make a contribution to keep it alive.
In a communiqué sent recently, the association says it had been working on a Retail Restart Plan to meet the needs that integrated retail shopping feels are necessary in terms of measures to counter the effects of the pandemic.
At a time in which shops have been closed, there has been an “explosion of online shopping promoted by the large multinationals based outside Portugal”.
“This plan will be a joint call to mobilisation of the sector to promote and support actual shop retail in Portugal rather than on-line shopping.
Shopping centres have recorded losses of €600 million in terms of the support given to shopkeepers. In 2020 around 200 shops closed down in shopping centres which are members of the APCC, “the highest number ever recorded for one year”, and even greater than the period in which the troika was effectively running the country between 2011-2014.