Real Estate investment at €3.3Bn in 2022
Commercial real estate transactions in Portugal reached €3.3Bn according to Savills at the presentation of its study Portugal Real Estate Market Overview which outlined the balance for 2022 and prospects for 2023.
The study found that the turnover of investment in commercial real estate stood at €3.3Bn, with overseas investment representing 85% of the capital invested for the transactional year. The study also reflected an increase in US investment in Portugal.
“The results achieved in the real estate sector in 2022 showed a “fairly positive year in which we had an outlier: the sale of ECS funds to the Davidson Kempner Partners for €850 million”, said Savills Associate Director Alexandra Gomes.
She said that the hotel segment had “gained a lead”; offices were the “asset of choice for investors”; while logistics was the “big highlight of the year; a segment that has enjoyed a renaissance with increasing importance for investors”.
As to offices, the segment had enjoyed the “best year ever” with a take-up of 272,000m2, mostly in Lisbon and Porto. In Porto the market is very dependent on Technology, Media and Telecoms (companies) with many new companies coming into Porto and companies wanting to expand their activities in the city.
In the residential segment, the increase in housing construction costs (+11.7%) in like-for-like terms had not put the brakes on the total number of projects, however Savills says that higher interest rates are already being felt. It indicates that between 2023-2025 the Alcântara, Lumiar and Avenidas Novas have projects in the pipeline aimed at the high-end market.