The Portuguese property market continues to show some resistance, but with some “signs of slowing down,” according to the Portuguese property market. B. Prime.
According to the latest Prime Watch update, in the office market, “limited (quality) supply continues to discourage companies, who often stay put because they have no alternatives. Added to this component is effective demand reduction. which should lead to rent stabilization.”
The report also highlights the dynamics of the sector, which “continues to grow”, resulting in the promotion of several projects under construction but already partly occupied, “demonstrating that this imbalance between supply and demand continues to reinforce the “importance” that pre-leasing continues act”.
In the logistics segment, “the diagnosis is the same,” but in this sector the volume of purchases is “much more pronounced”: in the first half of this year, an increase of 93% was recorded compared to the same period last year. year.
In the retail sector, the research highlights a repositioning where “personal interaction is catching up.” Larger spaces allowing for greater interactivity are a recurring theme in high street retail and shopping centres, as well as the continued growth of food retail, which continues to invest in its ‘proximity’ network, according to the consultant.
The investment market performance was positive and amounted to 691 million turnover. However, Prime Watch expects “a decline in activity of approximately 30% by the end of 2023.”
“Although activity slowed in the first half of the year, both in terms of investment and office occupancy, we are confident that there will be an acceleration in business volumes later in the year, allowing us to compensate for this. reject.” These year-end performance should extend into early 2024, taking into account the stabilization of some of the uncertainties that have limited activity, such as inflation or interest rates,” comments Jorge Botha, managing partner of B.Prime, as quoted in the press. release.
Source: The Portugal News