2023 “ended up being positive thanks to the tourism and retail segments”, reveals Prime Watch, a study by B.Prime.

“The recovery of tourism was crucial with the hotel industry being responsible for 43% of the total investment volume, followed by the retail segment with 31%”, adds the study. The consultant says that in Portugal the investment market was supported by the provision of foreign investment, which was vital, as it was responsible for 76% of the total volume, in 2023.

The Portuguese market also has another factor that has conditioned the different segments, namely the lack of quality supply to meet the ever-increasing demands from companies, particularly with regard to ESG characteristics.

“This lack of supply has sustained continued pressure on rents, both in medium and prime rents, which have increased in all areas of commercial real estate and in practically all geographies”, says B.Prime.

“The year 2023, despite being challenging, turned out to be positive for the sector and with the stabilization of interest rates and inflation, a factor that most affected last year, we should resume strong dynamics in all segments of the real estate market, mainly from the second quarter of 2024”, according to Jorge Bota, Managing Partner at B.Prime.