Residential (in collaboration with Porta da Frente)

 

Despite the current crisis having impacted the conclusion of business, mainly by foreign buyers, national demand managed to sustain demand levels. The correction in the sale prices of apartments that had been registered since 2019 was accelerated by the effects of the pandemic, registering last year falls of 3% in Lisbon and 6% in Porto.

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Investment

 

The investment in 2020 historically reached the third largest volume of transactions with € 2,800 million, highly influenced by three major businesses.

 

Owners, banks and investors have been scrutinizing their asset portfolios and new business opportunities. International investors remain active in Portugal, with a higher incidence of unstructured off-market businesses, despite the uncertainty about the performance of some assets in the near future.

Offices

 

The office sector still awaits greater clarity on the impacts on space demand and occupation. Most occupants have maintained a cautious waiting strategy, especially with regard to pre-leases, with the prospect of resuming an increase in hotdesking positions and areas that promote teamwork and learning.

 

Retail

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The retail sector has suffered heterogeneous impacts on demand levels. In street commerce, the locations most dependent on tourism were the most affected, while neighborhood and convenience stores proved to be the most resilient. Expansion plans were generally suspended, with the notable exception of the food chains.

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Industrial & Logistics

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Latent demand in the industrial and logistics sector has increased, with the volume of absorption more than doubling last year. The robust growth of online sales is expected to continue to contribute to this increased dynamism, especially for last mile distribution spaces in urban centers, which has led owners and operators to consider remodeling, modernization and even speculative space construction.

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Hospitality

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The hotel sector, which is being hit hard by the crisis, has sought to reinvent itself, adapting the various services to current circumstances. However, despite these efforts, hotel income and the number of guests fell by 67% and 64%, respectively, in 2020, given the high dependence on foreign tourism, which represents around two thirds of demand.

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9th of March 2021

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Published by Andreia Almeida, Head of Research Lisbon, Cushman & Wakefield

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