Cushman & Wakefield has launched the 42nd edition of Marketbeat Portugal, a publication that summarizes the activity of the Portuguese real estate market in 2023 and its trends.
In a more challenging economic environment, the year was characterized by a mixed performance in the occupational markets, ranging from a sharp drop in the office market in Greater Lisbon to an increase to values above 2019 (pre-pandemic) in hospitality. In addition, the shortage of quality supply continued to justify some upward corrections in prime gross rents.
Commercial real estate investment activity recorded a year-on-year drop compared to 2022, with market yields being revised upwards.
By 2024, a distinct evolution is anticipated throughout the year, influenced by expectations of the ECB reducing benchmark interest rates in the spring – with the first semester still characterized by some stagnation, followed by a gradual recovery in the second semester.
