Investment fell to €1.6 billion, “in line with rest of Europe”
Property investment in Portugal fell by 50% in 2023 to a total of €1.6 billion, in line with the rest of Europe, according to figures from property consultancy Savills released on today.
“Factors such as high inflation rates, the rising cost of debt and a mismatch of sales price expectations between buyers and sellers are at the root of the drop in activity,” the consultancy said in a statement.
The unstable macroeconomic context has led to slower decision-making processes, resulting in a decrease in the number of property transactions, especially those involving a higher investment or with greater associated risk, concluded Savills.
Last year, with the exception of the retail and hotel sectors, all the others recorded significant drops in their investment volumes compared to 2022.
The retail segment was the most resilient in 2023, with a total investment volume 42% higher than in 2022 and representing 38% of the total investment volume, while the hotel sector totalled an investment of around €570 million.
Investment in student residences in Lisbon and Porto exceeded €100 million.
Of the 79 investment transactions closed in 2023, 54% corresponded to national investors, representing 30% of the total volume of property investment, with property investment funds, family offices and private investors directing their capital towards the acquisition of assets in the retail, hotel and accommodation and office segments.
Foreign capital totalled an investment volume of €1.1 billion, mainly directed towards the accommodation and hospitality, retail, healthcare and student residences segments.
For 2024, Savills highlighted the uncertainty of the macroeconomic scenario, geopolitical tensions and “constant legislative and fiscal changes, combined with government instability” as the main challenges.
LUSA
