Investment in commercial real estate down 60% in 2023

 In Commercial Real Estate, News

It might have been a good year for the residential housing market, but it was disappointing for commercial real estate which closed 2023 down 60% on 2022.

Overall, this year saw 80 deals closed involving €1.4Bn according to preliminary data from real estate consultants, which point to a 60% fall in investment and 70% fall in business in Portugal for the year.
The interest rate hikes and inflation, the governments ‘More Housing’ package, and two wars underway have all contributed to putting the brakes on investment in commercial real estate in 2023 by 60% compared to 2022.
The fall in Portugal is part of an overall trend for a cooling off in investment that has been felt all over Europe and is set to continue into 2024.
According to ECO, which sounded out several real estate consultants, the number of transactions that closed in commercial real estate in 2023 (hotels, logistics, retail and offices) has not exceeded 80 (72 of which were closed by October) with a total value of €1.4Bn, figures that translate into a 70% fall in transaction numbers, and 60% in terms of investment on 2022.