The economy should maintain a good pace of growth in 2018, with a GDP increase and the continued decline in the unemployment rate.

The commercial real estate investment market is expected to achieve a new record, with an increase in the number of new players and a diversification to alternatives products.

In the office sector, the lack of new product will continue over 2018 and will reflect on the vacancy rate decline, on the prime rents rise and on the increase of pre-lettings and renegotiations. The supply and demand for flexible offices spaces will increase.

Private consumption and the number of tourists will continue to incentive the retailers’ expansion. Openings of new shopping centres give way to extension and refurbishment works as well as innovation projects; most of these works will target food courts and leisure areas. The completion of the refurbishment works in some buildings will bring new commercial spaces to the prime high street axis and the expansion of retail to the surroundings streets, where the supply is higher at a lower price, will continue.

In the logistics market, the quality spaces are scarce in Lisbon and Porto, and the lack of supply will condition the take-up, which should be lower than in 2017. The construction of new build-to-suit and probably some speculative developments, as well as e-commerce dedicated structures will start.

The growth of demand for housing should continue to be significant throughout 2018, with the domestic market gaining a greater weight in relation to the foreign market. Nevertheless, the demand will continue to far exceed the supply and leveraging a price increase.

Tourism should maintain the growth trajectory, although with more moderates increases than in 2017, namely in the number of overnights and prices. New hotel supply will maintain levels of growth below the demand. Differentiation will increasingly set the trend on new projects.