Real estate investment in Portugal jumped 67 percent in 2022 to EUR 3.3 billion, according to a new report by real estate consultancy Savills.
The growth rate in the Portuguese market was the highest of the three Southern Europe countries included in the study, also comprising Italy and Spain.
The global value of investment in the three countries grew by 36 percent in 2022, compared to the previous year, reaching a total of EUR 31.7 billion euros, Savills says.
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Investment in Spain represented 52 percent of the total (EUR 16 billion) and had an increase of 39 percent, according to Savills. Italy, in turn, took in investments worth EUR 11.6 billion, 26 percent more than the previous year.
In 2022, Southern Europe also absorbed a greater percentage of total real estate investment on the continent, with 11 percent against 6.0 percent in 2021 and above the 7.0 percent it had recorded on average over the last five years.
The recovery of domestic consumption after the pandemic and greater protection against rising energy prices than in the rest of Europe contributed to these results, considers the real estate consultants.
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Cross-border investment reached 18.7 billion euros, 59 percent of the total amount invested in southern Europe and the highest volume ever recorded. Most of the foreign capital invested in the region came from other parts of Europe (23 percent) and the Americas (15 percent).
According to Savills, market fundamentals will remain strong and attract investors, particularly in non-first-time residential assets.
Investment is expected to lower in this region in 2023, but still with a better performance than the rest of the continent.
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