Spain 
Italy 
Greece 
Shopping Malls Account for 30% Of Commercial Real Estate Investment Since 2003
13 September 2017
The fact that Portugal ranks among the European countries with the highest density of shopping centres is well-known. But according to Cushman & Wakefield’s latest Shopping Centre report, the sector has raised 3.5 billion euros since 2003, accounting for 30% of the total direct commercial real estate investment in Portugal.
One of the study’s conclusions indicates that international operators accounted for 64% of investments between 2003 and 2017.
According to the consultancy, shopping centres “are not only appealing to consumers and retailers but are also considered one of the most attractive real estate assets in Portugal for institutional investors.”
Also, “indirect investment in the sector (through the purchase of units of funds specifically dedicated to the holding and management of shopping centres) is estimated to exceed €1.5 billion, almost exclusively from foreign funds.”
The average amount of direct investment allocated each year to shopping centres is 230 million euros, with foreign capital accounting for around 70%.
According to the data, Portugal ranks among the European countries with the highest density of shopping centres. The country has about 120 shopping malls totalling more than 3 million m2 of gross leasable area (GLA), resulting in a GLA of 280 square meters per 1000 inhabitants, higher than the European average of 239 m2. Just the metropolitan areas of Lisbon and Porto concentrate half of the total. The two cities have a total of more than 1.5 million m2 of GLA, in a total of 66 shopping centres, of which 41 are in Greater Lisbon, and 25 are in Greater Porto.
The report also includes the results of the scoring model developed by Cushman & Wakefield retail professionals with the objective of evaluating the quality of shopping centres in Portugal.
Applied to all centres with a commercial area of over 10,000 m2, this model estimates the annual number of visitors, sales per m2, size of the area of influence, commercial mix and quality of the project and management, resulting in its distribution into four categories denoting overall quality.
The high attractiveness of Portugal’s centres can be seen in the reports scoring, in which 42% of the existing projects are classified as Excellent or Very Good, and only 25% (16 centres) are found in the lowest classification (Limited).
The regions of Greater Lisbon and Greater Porto have the greatest concentration of centres rated as excellent, approaching 50%.
Original Story: Construír – Cidália Lopes
Translation: Richard Turner