Commercial real estate investment exceeds €1.1Bn

Commercial real estate investment in Portugal, most of it from overseas, exceeded €1.1Bn for the year by the end of August.

From January to June, investment in Commercial Real Estate exceeded €780 million, a like-for-like variation of 45%.
With four recent significant transactions, which totalled €360 million, the aggregate total stood at €1.1Bn by the end of August according to data from ‘Market Mid-Year 2022’, a twice-yearly publication from Worx Consultants which analyses recent transactions in the real estate market in Portugal and forecasts and trends for the near and mid-term future.
Sílvia Dragomir, Head of Research at Worx Real Estate Consultants, emphasises that “in this study on the microeconomic context, the relevance and impact of the macroeconomic situation with its pressures on financial conditions, increases in benchmark interest rates (with the expected and visible impact on the capital markets), the increase in the costs of loans to companies, high inflation, the depreciation of the euro against the dollar, and the fall in real disposable income of families were taken into consideration”.
“We also studied the aspect of sustainability across the various sector of the real estate market”, she said.
The study also highlighted the main investment transactions in Commercial Real Estate (CRE): Connect portfolios sold by Novobanco to Blackstone for €208 million; Smart Studios student residences sold to Round Hill Capital for €200 million; and an industrial and logistics asset also acquired by Blackstone from M7 real estate for €125 million.