Investment in commercial real estate accelerating in Portugal

Investment in commercial real estate accelerating in Portugal

The amount in the last three months raises the total for the year to 1,173 million and opens "good prospects" for the 4th quarter.

Investimento em imobiliário pode chegar aos 2.500 milhões no final do ano
Photo by Ricardo Resende/Unsplash

Investment in commercial real estate in Portugal reached 1,173 million euros until September this year and could reach 2,500 million euros by the end of the year, according to data released by JLL in its latest Market Pulse, the quarterly study developed by the consultant with the analysis of the behavior of the investment and occupation sectors in the areas of offices, retail and housing.

“Following the recovery felt in the previous quarter, investment in commercial real estate in Portugal accelerated considerably in the 3rd quarter of this year, totaling 583 million invested. This amount equals the volume of investment raised throughout the first half of the year and places annual activity at 1,173 million”, highlights JLL, in a statement.

"Maintaining this acceleration pace and considering the greater willingness of investors to diversify their investment targets both in terms of property types and locations, we will possibly reach 2,500 million transacted by the end of the year", defends Pedro Lancastre, JLL's general director, cited in the same note. “At the offices, everything is also aligned to overcome last year's occupancy and in housing sales have been surprising, with a new record of transactions and solid prices. Retail, of course, has been recovering more slowly, but it is also on the right path”, adds the official.

Investimento em escritórios
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JLL's quarterly study concludes that 50% of the investment in commercial real estate refers to deals completed in the last three months. Offices concentrate 50% of the annual investment, totaling 582 million, followed by hotel real estate, with a 22% share equivalent to 256 million, and the alternative sector, which raised 18% of the amount invested, with a total of 218 million . Prime yields remain stable in all sectors, reaching record lows in offices (4.00%), high street retail in Lisbon (4.25%) and industrial & logistics (5.75%).

Main indicators by segment


  •  The amount transacted in commercial real estate reached  583 million in the 3rd quarter, of which 53% related to the transaction of office assets and another 41% of hotel assets.
  • One of the biggest transactions in the quarter concerns the sale of a portfolio of 15 office buildings at Quinta da Fonte for 150 million. In the office segment, there was also the sale of the JQ1 building, in the Eastern area of Lisbon, for 98 million.
  • In the hotel sector, the transaction of several prime assets, such as the Tivoli Vilamoura and Carvoeiro hotels, for 148 million, proves that this market is recovering at a good pace after the fall in tourism.
  • Prime yields remain stable, reaching minimum levels in several sectors. Cases in offices, in 4.0%, and in street commerce in Lisbon (4.25%), as well as in Industrial & Logistics (5.75%). Yields in shopping centers are 5.25% and in retail parks 6.5%.


  • In the 3rd quarter, the take-up in Lisbon reached 25,500 m2 in a total of 39 operations, an activity that is 41% above the same period in 2020.
  • During this period, zone 7 (other zones) was the most dynamic, with 36% of the quarterly take-up due to an operation of around 7,000 m2 for immediate occupation. Even so, it is Parque das Nações (zone 5) that leads in annual terms. On the demand side, it is led by the TMT's & Utilities sector, with 46% of the quarterly take-up, with an annual accumulated predominance, with 42%.
  • The availability rate increased to about 8%
  • About 35,900 m2 are in pipeline for 2021, spread over 5 buildings.
Investimento em retalho
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  • "There is a recovery in the economy and, consequently, in consumption. However, the expansion of activity in the retail real estate sector remains limited by the lack of product in some areas", notes JLL.
  • New retail spaces are emerging in residential areas, especially in a convenience commerce model that reflects the greater appetite of consumers for proximity shopping due to the new consumption habits that emerged with the pandemic.


  • There continues to be a high sales activity still in the plant, "which reflects a market with a lack of supply in a context of strong demand".
  • International buyers accounted for 52% of sales in the 3rd quarter, as part of the activity promoted by JLL. Demand levels are in line with the highs of the 4th quarter of 2019.
  • There is a slowdown in the pace of rising prices.
  • As the city center has prices at more expensive levels and products in higher segments, several areas emerge with a high quality offer at more affordable prices. In addition, there is a greater appetite for secondary areas where it is possible to purchase larger houses at lower prices, a relocation that has also become possible for many families due to the new work patterns. Emerging areas include Alcântara and Marvila, in Lisbon, and Oeiras in the Metropolitan Area, according to the consultant.
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