Tenant incentives increasing, according to the data of Banco de Portugal

by   CIJ News iDesk VII
2020-06-26   14:51

According to Banco de Portugal, the country's GDP will shrink by 9.5 percent in 2020. That's led the bank to predict only a limited impact on residential real estate however, as it notes that the construction sector is one of the least affected by the pandemic. In the commercial real estate sector, Q2 market volumes for 2020 reflect a slowdown in activity. Although nominal values have remained unchanged, incentives for tenants are increasing as landlords have to work harder to win and catch clients. Lisbon rental premiums for office space are stable at €23/ sqm per month in offices, €130.0 for high street retail and €4 for industrial. Basic yields, however, are already softening and are now at 4.10 percent for offices, 4.25 percent for retail and 6.10 percent for industrial assets.