Foreign real estate funds are continuing to invest millions of euros in both the long-term rental and hotel and leisure markets in Portugal.
This is according to the Director of Investment at consultants CBRE, Nuno Nunes, who was one of the keynote speakers at the 1st Real Estate Development Conference (COPIP) which ran online early this month.
He said that, against all expectations from the Covid-19 pandemic, the hotel and high street retail sectors have continued to attract investors.
However, he said that decisions over fund investments concerning shopping malls, which had been buoyant last year, have again been put on ice because of the changes in shopping habits caused by the virus which have moved away from malls to online purchases.
Regarding the hotel sector, which in the initial phase of the pandemic was adversely affected in terms of investment attraction, and continues to be affected in terms of guests and operations, there is now a perception among investors that the effect of the pandemic will be temporary.
However, for investors in large corporate hotel chains whose business models are based on business trips, confidence was not so high, but an interest is being kindled in the leisure segment.
Nuno Nunes said that there would be some great surprises by the end of this year and in the first half of 2021, involving hotel transactions worth hundreds of millions.
“We have seen at least €600 million in operations that are being negotiated at the moment in the hotel sector,” he told the conference.
Investment in high street retail premises, serving an industry that relies heavily on tourists and which suffered a significant contraction in the first half, is already showing some relevant transactions to the end of the year.
However, the CBRE director highlighted that, for now, the shopping centres segment in Portugal continues to be affected by the pandemic and, therefore, is being eyed with caution among real estate investors.
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By CHRIS GRAEME/ESSENTIAL BUSINESS