'Offices: pressure from companies to return employees'

The Covid-19 pandemic "forced" people to stay home and work remotely, and since then, many people continue to work in a hybrid mode where they spend a few days a week at home and go to the office the rest of the days. Will this trend continue? Jorge Botha, president of the Association of Real Estate Consulting and Appraisal Companies (ACAI), believes not, as there is "a lot of pressure from companies to get people back in the office." Why? Because "productivity has ultimately suffered" and because "the team spirit, the camaraderie, the cooperation of the companies' employees has been seriously affected," he says in an interview with idealista/news. "There are CEOs of companies who say they have employees who''They've never seen one they don't know. ' This cannot be seen as the new normal," he adds, emphasizing that "offices are still a very interesting asset in Portugal and Europe." "In the UK and the US, there are some situations where the sector is struggling because they are large companies and they can't bring back staff and are cutting back on space," he says.

When asked whether there is still a lot of interest in office space and a lack of space to meet demand, the president of ACAI - who is also managing partner of consultancy B. Prime - replies that yes, although he confirms that there is a slowdown in activity compared to 2022: "As of the end of the third quarter, the beginning of the''market activation. We are already noticing this upturn. We know, for example, of an offer from an international company above the asking rent, just to grab the space because there is another offer". "If someone is looking for 4,000 square meters of office space, which is not even something superior, it's just not there," stresses Jorge Botha.

Logistics: "Demand remains about the same" In the case of the logistics segment and in the evaluation of activity in 2023 compared to 2022, the expert confirms that "demand remains about the same" and the problem is still the supply, which is very limited in terms of quality of goods. "Operators, and many of them are international, are very concerned about ESG issues (Environmental, Social and''Governance), and it is very difficult to find affordable solutions on the market. There are new projects in construction, but they are almost completely occupied. This is a market that has the potential to attract new product, new promotion.

Retail? "It's a more mature segment" Regarding the retail segment, it is "more mature," says the ACAI president, noting that "shopping centers have reached their limit," remaining a place for repositioning, renovations, etc., while in street trading "there is a lot of activity, especially in''most attractive areas', there are always new brands looking to enter the market. He also argues that e-commerce, which grew during the pandemic, has not had as strong an impact as expected. "There was a very sharp growth during Covid-19, but it has stopped. And what retailers are telling us is that there has even been some retreat as stores have started to operate not just as outlets but as distribution points for some of the products sold online. It is a market that is in the process of recomposition and has not yet settled into a new normal, it is still very dynamic," he says.

The hospitality segment with high levels of profitability As for the hotel''segment, it "reflects the situation of the tourism market in Portugal" with "levels of profitability not seen in recent years". "Hotel room prices have increased significantly and occupancy levels are even higher than before," he emphasizes. Jorge Botha believes tourism is in a very positive situation - "I think there will be more and more new projects both in the cities and on the coast" - but warns, "The risk I see is that we probably reach peak prices. After that, either demand will drop or we could reach a limit where Portugal ceases to be a common and standard destination and becomes a market for a narrow audience, which I don't think is what we intend for the country. "

Fred plunged into''journalism 20 years ago and became the first employee of idealista/news in Portugal at the end of 2010. Along the way, he has delved into real estate studies, writing about the sector with joy and commitment. And always smiling. Always.