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Portuguese Real Estate Investment Survey - 4th Quarter 2019

Portugal in the real estate investment route

The Portuguese Real Estate Investment Survey aims to analyse the real estate market’s development in Portugal, the key investment strategies used by the players and the major trends of this business.

Key findings:

  • Globally, the investment strategy (75%) continues to be the primary choice of players in real estate sector, being higher than in the first quarter of 2019 (57%).
  • In the last 12 months, 33% of the respondents made acquisitions of more than 50M€, and 25% up to 25M€, mainly in the Portuguese market.
  • Value added investments and opportunistic deals (both 58%) are perceived as the preferred investment strategies. The majority of players (58%) foresee to increase their portfolio by more than 10%.
  • Banks (75%) continue to be the main business feeders of real estate acquisitions, followed by Pension Funds (67%). Capital sources arise mainly from Europe (83%) and North America (75%).
  • Core assets (42%) and opportunistic deals (42%) will be the main target of further divestment. 34% of respondents aim to reduce their portfolio by more than 10% and other 33% aim to reduce it by more than 5%.
  • Pension Funds (67%) are identified as the main real estate purchasers, with capital sources arising mainly from Europe (92%) and North America (67%).
  • Noteworthy is the slight increase in volume and transaction prices in the hotel and logistics sectors, as well as the great stability for profitability rates, particularly in the commercial sector.

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