Cushman & Wakefield MarketBeat reports analyse 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.
The sanitary situation is improving in Portugal, with its vaccination campaign currently evolving at a much quicker pace than initially expected.
Both exports and investment are forecasted to highly contribute to a national GDP growth of 4.1% in 2021, with year-on-year increases of respectively 8.3% and 10.4%. For 2022, Moody’s Analytics foresees a 5.4% GDP growth for the Portuguese economy.
Office
Lisbon
Greater Lisbon office market merely registered 27 new lease deals, in a total of 26,150 sq.m (-35% YoY) transacted in the second quarter of 2021.
Parque das Nações (zone 5) attracted once again the highest share of take-up (41%), which includes the biggest deal of the year – Critical Software pre-let of around 10,000 sq.m in K-Tower.
Porto
The leasing activity in Greater Porto over the second quarter of 2021 registered a total take-up of 10,320 sq.m distributed over 18 deals.
Metyis new headquarters in Gondomar, which already begun construction, featured the largest deal of the semester, leading Other Zones (zone 8) to account for the highest share of take-up (41%).
Retail
The uneven impacts of COVID-19 in the sector increased retailers and developers interest in retail parks and stand-alone units.
Cushman and Wakefield’s registered circa 100 new openings in the second quarter of 2021, representing a significant year-on-year recovery of 41%, totalling an occupied area of 32,400 sq.m.
Industrial
Until June, take-up increased once more, totalling 256,100 sq.m of occupied area distributed over 40 deals, which represents a very positive year-on-year evolution of 132%. In line with the foreseen renewed interest in the sector from the demand side, which is also driving supply with increasing announcements of pipeline projects from both companies and developers.
Investment
Institutional investment picked up in Q2, with €354 million transacted in the quarter, a year-on-year increase of 66% and taking the H1 volume to €556 million. The quarter was highly influenced by the office sector, which accounted for 30% of the investment volume, and by the alternative assets segment, with a share of more than 40%.
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