Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1}

Market Update Portugal

Andreia Almeida • 18/08/2020

OFFICES

The overall suspension of decision-making processes generated by the current situation had a greater impact on the office market throughout the second quarter. In the Greater Lisbon area, the volume of occupation in the first half of the year registered a year-on-year drop of 23%, which was still mitigated by the conclusion of some large transactions that started in the pre-COVID-19 period. With 84,400 sq m transacted, over 57 transactions, a new historical record of average leased area was registered, reaching 1,480 sq m.

RETAIL

The volume of retail sales published by National Statistical Institute of Portugal (INE) shows the effects of the pandemic COVID-19 with a 4.5% year-on-year drop in the first five months of the year. This was due to a sharp reduction in April (-19.4%) and May (-12.0%), which was more significant in the non-food retail, with an accumulated decrease of 12.6%, still offset by a 3.6% increase in food.

INDUSTRIAL & LOGISTICS

The current pandemic has slowed the trade activity of the Portuguese economy and, according to INE, between January and May, exports and imports of goods registered a year-on-year decline of 18.3% and 19.1%, respectively. However, Oxford Economics’ forecasts point to a mitigation of this retraction in the remaining months of the year, with 2020 reaching negative growths of 5.8% in exports and 8.0% in imports.

INVESTMENT

Despite the negative impact of the current situation on the real estate investment activity, the first half of 2020 registered a new historical high - between January and June, €1,670 million of commercial real estate were transacted (a 50% year-on-year growth compared to 2019) distributed over 27 deals.

The sale of 50% of the Sierra Prime joint venture by Sonae Sierra and APG to Allianz Real Estate and Elo, for around €800 million in Q1 played a vital part in these results, which compensated for the 88% drop recorded in the second quarter compared to the previous year, to a mere €87.5 million.

Related Insights

The Museum of Art, Architecture and Technology, Lisbon, Portugal
MarketBeat

Portugal Snapshots

Cushman & Wakefield MarketBeat Snapshot reports share quarterly Portugal commercial property activity across office, retail and industrial real estate sectors including supply, demand and pricing trends at the market and submarket levels.
Andreia Almeida • 25/08/2022
Street roofed with umbrellas, Agueda, Portugal
Research

Marketbeat Portugal

Marketbeat Portugal analyses the property market activity in depth across offices, retail, industrial, hotels, residential and investment sectors.
Andreia Almeida • 14/03/2022

Recent News

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies.

MORE OPTIONS
Agree and Close
These cookies ensure that our website performs as expected,for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS