January 18, 2022 – Brainsre.news
According to CBRE, of the 2.2 billion euros invested in the rental property sector in 2021, 40% was channelled to office assets, 22% to residential rental properties, 15% to hotels and 12% to healthcare assets.
Despite the pandemic and the various associated restrictions and uncertainties, the rental property sector remained highly dynamics last year, according to indicators presented by the consultancy. The investment volume was lower than the previous year though still the fifth-highest ever.
At the same time, not only were several high-value portfolios bought and sold but there was also a significant number of transactions (more than 80), a figure only surpassed in 2018 and 2019, CBRE stated in a press release sent to brainsre.news.
Another factor highlighted by CBRE, revealing that Portugal continues to be an attractive place to invest, is the entry of several new international players. Six of the ten largest transactions in 2021 involved international investors entering the Portuguese market for the first time. These include French firms Tikehau and Icade Santé, North America’s Jamestown, Tishman Speyer and Sixth Street, and Spain’s Azora. In total, ten investors invested in the country for the first time.
Like in 2020, Portuguese investors accounted for 25% of the capital invested in rental property in Portugal, while the USA and France were the main international source markets.
In terms of capital allocation by sector, 40% was channelled to office assets, 22% to residential rental properties, including student residences, and 15% to hotels. Healthcare assets represented 12% of the investment volume, a record for Portugal.
It should be noted that CBRE, which participated in more than 50% of the transaction volume and in six of the ten largest deals carried out last year in Portugal, represented Fidelidade in what is the largest real estate transaction in the health sector in Portugal, the sale of the Saudeinveste Fund to Icade Santé. “This sale confirmed investors’ appetite for assets with operational risk, generally associated with longer-term contracts and higher rates of return than traditional investment asset classes and with extremely solid market fundamentals,” Nuno Nunes, Director of Investment at CBRE Portugal, stated.
The retail sector, which in previous years always occupied the first or second position (versus the office sector) in investment volumes by asset class, saw a fall in the amount invested in 2021. Although it lost this relevance due to the reduced number of shopping centre transactions, there was a high demand for high street shops and food retail units. Despite dominating investor preferences, the logistics sector also posted a reduced volume of investment due to the scarcity of product available for sale, a situation that should change in 2022.
CBRE predicteedd that the volume of investment in 2022 will increase by 50% compared to 2021, putting the market back above three billion euros.
Translation: Richard D K Turner