In 2015, the commercial real estate investment volume reached over € 1.8 billion, the absolute record in Portugal. In 2016, it is anticipated that various financial entities may need to put portfolios on the market. The retail sector contributed more than 55% of the total investment recorded in 2015, with 10 transactions over € 50 mil- lion, including the sale of several large shopping centers.
The office sector accounted for approximately 25% of the total, with 8 deals over € 20 million, including the sale of Tower Colombo and Duarte Pacheco 7.
Around 90% of commercial real estate in- vestment came from foreigner investors and 50% emanated from US companies. The positive market conditions led to yield compression, especially in the retail and office sectors.
The prime office yield dropped to 5.5%. For shopping centers, although they were located outside prime areas, deals were signed at 5.5%. In retail high street, the prime yield declined to 5%.
Source : BNP Paribas Real Estate