Real estate investment should accelerate in the second half of 2019 and can achieve 3 billion euros
The real estate investment market in Portugal has been very dynamic during the first half of 2019 and the pace is expected to be even faster in the second half of the year, with an increase in real estate investment of around 3 thousand millions of euros. This is one of the key findings of CBRE’s research department, which reviews the last six months and projects market behavior by the end of 2019.
Francisco Horta e Costa, Director General of CBRE points out that “the level of investment in 2018 was around 3.5 billion euros, and it is unlikely that this record will be reached again in 2019. However, CBRE’s projections are now higher than those released at the beginning of the year, pointing to the investment volume between 2.5 and 3 billion euros, compared with 2 to 2.5 billion euros forecast in January 2019 “If these forecasts materialize, it will be the second year of greater real estate investment in Portugal and the fourth in which the values exceed 2 billion euros.”
Cristina Arouca, Director of Research at CBRE, points out the main reasons for the acceleration of investment in the second half of 2019 “the maintenance of high liquidity by investors and the assurance that interest rates will remain unchanged until at the end of the year, as announced by the European Central Bank (ECB) in March this year. At the same time, the fundamentals of the real estate market in Portugal remain robust, as demand remains very active and there is still a shortage of available rental space, which has led to a strong increase in the value of rents and, consequently, of real estate assets. The attractiveness of the sector is also reflected in the number of new investors, including international investors, who approach CBRE daily. “