The real estate market proved its resilience during the pandemic, and should continue to remain dynamic and evolve positively, according to industry experts. For Jorge Bota, Partner at B. Prime, and taking into account the data analysed and the evolution of demand, "2022 could be a golden year for Portuguese real estate, with positive performances in all sectors, even if at different paces". "If there are no unforeseen situations, this year will be a relevant milestone for the sector and for the Portuguese economy," he argues.
In the annual edition of Prime Watch, B., Prime highlights the different performances of the various segments of the real estate market, in addition to the continued diversification of portfolios, in which "the alternative segment registers increased interest from investors".
"The panorama of uncertainty is beginning to dissipate around the pandemic, but is becoming more intense with regard to the evolution of inflation, interest rates and some geopolitical situations", such as the war in Ukraine, which could have an impact on the economy, however, "the solidity of the real estate market is maintained and continues to progress at different speeds", stresses the statement sent to the press.
Analysis by property segment
Investment Market
Despite the uncertain scenario, the Portuguese investment market registered the entry of new international players, reaching a level of 73% of the total investment volume. "An increasing diversification of portfolios stands out, whether in the residential, health, office or hotel sectors. This alternative segment accumulates 32% of the preferences, however offices continue to be the most appetising (37%)," stresses B.Prime.
Office Market
Telework has revolutionised the way we face our working routine, which in turn has "definitely" influenced the office market. Despite this, and contrary to what one might expect, "the occupation of this type of space did not suffer due to a strong demand". According to B.Prime, the 'Flex Spaces' operators have become decisive; "this is because companies seek greater flexibility in the framing of rental contracts, besides a more central location, where the mobility factor is primordial". Sustainability criteria in real estate development projects are becoming more and more important for investors.
