Portugal posts largest increase in investment in real estate in southern Europe

Portugal enjoyed the largest increase in real estate investment in southern Europe, up by 67% according to a report by the consultant Savills.

Real estate investment in the south of Europe (Spain, Italy and Portugal) achieved a record amount of €31.7Bn in 2022.
The total investment value for the three countries grew 36% like-for-like. Investment in Portugal was up 67% in 2022 on 2021, with €3.3Bn.
Southern Europe also attracted the greatest percentage of real estate investment in Europe, with 11% compared to 6% in 2021, and above the 7% posted on average over the past five years.
Spain had 52% of the total (€16Bn), an increase of 39% according to Savills which foresees a lower investment turnover in the region for this year, but nevertheless showed a better performance than the rest of Europe. Italy posted an investment of €11.6Bn, up 26% on the 2021.
The recovery of internal consumption after the pandemic and greater protection against increases in energy prices compared to the rest of Europe contributed towards the results.
Cross-border investment stood at €18.7Bn, 59% of the total invested in southern Europe, and the greatest volume ever posted.
Most of the overseas capital invested in the region come from other parts of Europe (23%) and the Americas (15%).
Savills states that market fundamentals will continue to be strong and attract investors, particularly in second home residential assets.
The consultant also notes that the structural imbalance between supply and demand for housing and logistics assets in southern Europe will favour growth in the rental market, or at least its stabilisation. It also believes that demand from tenants will continue to stimulate real state investment in the region.

Photo: Amoreiras – Wikipedia