The CBRE Research Department took stock of the last semester and predicts that market behavior by the end of the year, commercial real estate investment is expected to reach 3 billion euros.
According to its study, by June 2019 commercial real estate investment was around € 1.1 billion, with the hotel sector accounting for the largest share of capital, at 39% for the first time. Retail represented 29% of total investment in real estate income, and offices 23%.
Francisco Horta e Costa, CBRE’s CEO says that “CBRE’s projections today are higher than those announced at the beginning of the year, pointing to an investment volume of between 2.5 billion and 3 billion euros”, about 500 million more than expected in January. “If these forecasts come true, it will be the second year of the largest real estate investment in Portugal and the fourth in which the values exceed 2 billion euros.” In her turn, Cristina Arouca, CBRE’s research director, points out as the main reasons for the acceleration of investment in the second half of 2019 “the maintenance of high liquidity by investors and the guarantee that interest rates, will remain unchanged until the end of the year, as announced by the European Central Bank.”.
CBRE forecasts as the main market trends for the next two years, the imbalance between demand and supply in the rental market, which causes a sharp rise in the value of rents and, consequently, the appreciation of real estate assets. The attractiveness of the sector is also reflected in the number of new investors, namely international investors.