Property investment reaches a new peak in the 3rd quarter of 2024, up 39% on the previous year

The property market in Portugal continues to show significant resilience, with the volume of investment reaching 342 million euros in the 3rd quarter of 2024, an increase of 39% on the same period last year and 9% on the previous quarter, according to data from CBRE, a leading property services consultancy.

‘The resilience of the Portuguese property market continues to exceed expectations, reflecting robust demand in strategic segments such as retail and logistics. We see a stabilisation in yields and a promising pipeline of transactions, which points to sustainable growth in the short term. This performance highlights Portugal’s attractiveness as a safe destination for investors looking for diversification and solidity, investing in both traditional sectors and emerging products. For the future, we maintain an optimistic outlook, stimulated by new opportunities for development and expansion, especially in the metropolitan areas of Lisbon and Porto,’ says Francisco Horta e Costa, CEO of CBRE.

RETAIL: EXPANSION AND NEW OPENINGS IN CITY CENTRES

In the 3rd quarter of 2024, the retail sector stood out for representing more than 60% of the total investment volume, exceeding 200 million euros (leveraged by shopping centre transactions). There were also 28 new shop openings in the main centres of Lisbon and Porto, led by the Food & Beverage (F&B) segment. This dynamism in the retail sector is also reflected in positive figures for the shopping centres managed by CBRE, with sales growing by 5.4% and traffic increasing by 5% up to September. By the end of the year, an additional 17,550 square metres are expected to be added to the retail parks currently in the final stages of development.

LOGISTICS MARKET: GROWTH IN INVESTMENT AND INCREASE IN PRIME INCOME

There was a 51 per cent increase in accumulated investment in the Industrial & Logistics (I&L) sector compared to the previous year. Despite a 20 per cent drop in the take-up of logistics space compared to the 3rd quarter of 2023, with an occupied area of 234,000 m², due to the lack of existing supply, the sector continues to see strong demand, stimulated by new products entering the market. This scenario is pushing prime rents to higher levels, now set at €6.55/m²/month. In terms of yields, Lisbon and Porto remained stable at 5.75 per cent and 6 per cent respectively.

OFFICES IN LISBON AND PORTO: OCCUPANCY AT RECORD HIGHS AND VACANCY RATES STABLE

In the office market, both Lisbon and Porto recorded significant accumulated occupancies. In Lisbon, 41,000 m² of office space was occupied in the 3rd quarter, totalling 168,500 m² since the start of the year, representing an increase of 46% on the 2023 total. The vacancy rate in Lisbon fell by 23 basis points to 7.45 per cent. In Porto, office occupancy exceeded 2023 levels, with take-up of 58,600 m² up to September, representing an increase of 14%. This growth was driven above all by company relocations, which accounted for around 60 per cent of occupancies in the 3rd quarter. The vacancy rate increased slightly but remains at low levels, now standing at 5.6 per cent.