Real estate investment falls 55% in H1

 In Commercial Real Estate, News

High interest rates, inflation and the Government’s More Housing package have put the brakes on commercial real estate investment in Portugal which has fallen by around 56% since January.

Cushman & Wakefield has closed 27 transactions worth €360 million in a back of the envelope calculation which could change in the coming weeks.
JLL estimates investment of €400 million, a fall of just over 50% on the same period last year when €822 million were invested.
According to C&W the retail segment netted €258 million (x7 on H1 2022), mostly from just one investment, offices (€47 million – down 69% on H1 2022), and logistics (€22 million – down 89% on H1 2022), hotels with €19 million (down 92%) and €13 million in other segments such as health.
JLL says that investment continues to be anchored in retail (60%) as a result of the sale of a portfolio of supermarkets in Q1 of 2023 (Project Amália – a portfolio of Pingo Doce supermarket premises was purchased by LCN Capital Partners for €145 million).
The two real estate consultants say that in H1 2023 there has been a like-for-like fall in real estate investment of 40% which to March (Q1) had around €225 million and involved less than 20 transactions.