Lisbon is one of the ten most attractive European cities for real estate investment in 2021, ranking tenth in the EMEA Investor Intentions Survey 2021 report, released by CBRE. The top of the list is led by London, which, despite the post-Brexit, remains important as the most attractive city for real estate investment in Europe. Berlin and Frankfurt took second and third places, followed by Paris and Amsterdam. Germany ranks as the country with the largest number of cities in the table, with Mun
Lisbon is one of the ten most attractive European cities for real estate investment in 2021, ranking tenth in the EMEA Investor Intentions Survey 2021 report, released by CBRE. The top of the list is led by London, which, despite the post-Brexit, remains important as the most attractive city for real estate investment in Europe. Berlin and Frankfurt took second and third places, followed by Paris and Amsterdam. Germany ranks as the country with the largest number of cities in the table, with Munich and Hamburg appearing in the sixth and seventh positions. The last places belong to Zurich, Warsaw and of course, Lisbon.
The report revealed that, overall, around 60% of European investors plan to invest more in real estate this year than in 2020. Almost 75% indicated they want to buy 10% or more this year compared to the previous one, although there are some differences noticeable between the various countries. For example, in the United Kingdom, more than 80% of investors expressed a willingness to invest more capital.
Although telecommuting and flexible working have gained ground, due to the pandemic COVID-19, the analysis reveals that offices are the preferred asset class for European investors. The figures indicate that for 35% of respondents, the office area is the preferred area within the real estate sector, reflecting a positive market sentiment about the future of quality offices (Class A).
The residential sector also gains more and more importance when it is highlighted as the second most popular class of real estate assets, with 24% of the intentions, followed by the industrial and logistics sector with 22%. Thus, in these three sectors, prices are expected to remain stronger, while most investors expect considerable value reductions for certain types of commercial and hotel assets, such as for substandard offices.
Due to the uncertainty brought about by the pandemic and its impact on economic and real estate fundamentals, more than 50% of respondents indicated a preference for core and core plus strategies in 2021.
Investors demonstrated a greater focus on adopting sustainability strategies (ESG - Environmental, Social and Governance), with two thirds indicating that they have already adopted the ESG criteria in their investment practices. UK based companies are the most attentive to this issue, with 89% of respondents reporting that they have already adopted ESG strategies.
According to Cristina Arouca, Director of Research at CBRE Portugal, “In Portugal, investment in commercial real estate started timidly in 2021 due to the general confinement to which the country was subject, including restrictions on travel and visits to properties, reflected in a strong slowdown in investment activity during the first three months of the year. CBRE recorded an investment in the order of 200 million euros, which is about 40% above that observed in the second quarter of 2020, at the time of the first major confinement, but 50% below the previous quarter ”.
For Nuno Nunes, Director of Capital Markets at CBRE Portugal, there continues to be a high interest in the Portuguese real estate market and, with the country's gradual lack of definition and a vaccination plan in progress, a very dynamic second semester is expected. “Portugal is perfectly on the radar of the international investment community and, at the national level, we foresee very positive developments in the investment capacity of local players. There are currently more than 2,400 million euros of assets on sale or with ongoing processes to be launched to the market soon, leading us to anticipate an investment volume for the year of approximately 2,600 million euros. Being an amount slightly below that observed last year (of 2,900 million euros), it is still quite relevant for the national market ”, says the leader.
With the expectation that vaccination plans will remain on schedule, CBRE predicts that in 2021 European investment volumes will increase by up to 5% over the previous year, although it is likely that there will be some variation between countries and asset classes .
Source: Imovirtual Noticias