Annual returns generated by investment in commercial real estate in Portugal, rose from 6.8% in 2021 to 8% in 2022, according to the MSCI Portugal Annual Real Estate Index. This result makes Portugal one of the most profitable destinations in Europe in this market.

“In 2022, the real estate market achieved a return of 8.0%, with the hotel and retail sectors in the spotlight”, revealed the MSCI Portugal Annual Real Estate Index and reported by idealista.

Within commercial real estate investment in Portugal, there were segments that returned higher returns than others, points out the same index:

Hospitality: annual return of 12.5% in 2022 (i.e., three times more than the one registered a year earlier, 4%);

Retail: return of 8.5% in 2022 (7.3% in 2021);

Offices: generated a return of 7.3% (6.9% in 2021);

Industrial assets: 7.8% in 2022 (7.6% last year);

Alternative assets: yielded 4.4% in 2022 (maintained last year's performance).

Therefore, the annual return to investors in commercial real estate in Portugal, of 8%, was higher than that recorded in other asset classes (some more volatile), such as real estate investment funds (5.5%), equity (7.7%) or bonds (-18.7%), according to the same index, which assesses the annual performance of commercial real estate investment, based on the analysis of a sample consisting of 873 commercial real estate assets, valued at 9,700 million euros (35% of this Portuguese market).

Portugal highlighted

Looking at the returns generated by commercial real estate investment in Europe, Luís Francisco, Vice President Real Estate Cliente Coverage – Iberia, The Netherlands and Middle East at MSCI, concludes that Portugal was one of the countries where this type of investment yielded the most in 2022.

“Portugal had a very interesting evolution in the European context in 2022, in a year in which almost all other markets registered lower returns than the previous year. In addition, our country was an exception with regard to asset valuation, taking into account that significant value corrections were observed in some of the most mature markets in Europe, such as the United Kingdom or the Netherlands", commented Luís Francisco in the occasion, cited by Vida Imobiliária.