After two consecutive years of surpassing the 3 billion euro barrier, expectation is that, despite a slight drop, 2020 will again be an historical year in terms of real estate activity in Portugal, with amounts traded of around 2.500 million euro.

in 2020 the alternative assets, which include amongst others the student residences, were one of the rising stars in our country, with 18% of investment. A trend in line with what is already taking place abroad, unlike what happened with retail, which, despite dropping in terms of investment share internationally, remained leader in Portugal during 2019, with 29% of investment.

Nevertheless, the gap when compared to the office segment kept shrinking, with the latter guaranteeing 27% of investment, and hotels kept rising, with 17%, equivalent to 550 million euro guaranteed by the trade of 11 assets.

Hotels should be one of the segments which will increase its investment share the most in 2020, considered the experts. Demand for these type of assets keeps increasing, leading to a yield compression and to a wider geographical dispersion of demand.

Regarding the coming months, we will see «a great bet from investors in Porto», which will receive players with increasingly more diversified risk profiles, from value-add to core+ and, step by step, also very core investors, such as insurance companies.

Source: Iberian Property

February 2, 2020