Logistics and hotels boost H1 investment volumes in Portugal – Savills

A total of €600 mln was invested in the commercial property market in Portugal in the first half of 2022, up 19% on the same period in 2021, according to Savills.

The performance was driven by the logistics and hotels segment, which accounted for 65% of the investment volume.

Investments in Q2 reached €391 mln (+62% year-on-year), thus recovering from the 21% drop recorded in Q1.

The logistics segment totaled nine transactions worth €200 mln, with the main highlights being the launch of Aquila Capital’s €1.5 bn logistics fund and the purchase of two assets by Bedrock Capital and Europi Property Group (EPG).

Eight transactions were closed in the hotels segment, totaling €197 mln, with the sale of the Pestana Blue Alvor Hotel to Azora being the largest transaction, worth €75 mln.

According to Savills, e-commerce and increased interest for modernisation of the facilities boosted the logistics segment, while the hotel sector benefitted from the good performance of tourism as of Q4 2021, attracting mainly international and domestic investors.

Paulo Silva, head of country Savills Portugal, said: ‘Investor confidence regarding the current economic outlook will influence market dynamics. However, the last two quarters of 2022 will lift investment volumes through the completion of major portfolio and asset sales. The domestic investment market continues to benefit from strong market fundamentals that support active demand leveraged by high levels of liquidity. The most attractive sectors for investors will continue to be offices, logistics, hotels and the living sector.’

Foreign investors dominate in the Portuguese property investment market with 77% share, mainly from countries such as Spain, Germany, Switzerland and China.

In the office market, companies are increasingly moving or expanding premises as integrated actions in their ESG strategies, putting sustainability and optimisation of workplaces at the top of their priorities.

Office take-up in Lisbon was 168,339 m2 (+53%) and in Porto reached 30,287 m2.

In the retail sector, proximity supermarkets boosted consumption, along with e-commerce, while retail parks continue to be an attractive asset class for brands and investors.

The take-up volume amounted to around 160,000 m2 in H1 and, according to Savills, over the next four years, the Lisbon market should have around 288,000 m2 of new spaces, with 45% already in the pre-letting phase.

In the Lisbon Metropolitan Area, around 26,000 homes were sold up to June (+9%), while the Porto Metropolitan Area saw a 4% increase compared to H1 2021.


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