Property investment may reach 2.7 billion euros this year, compared to 2.1 billion euros in 2021. According to statements by Eric van Leuven, director general of Cushman & Wakefield in Portugal, to Lusa, cited by Observador, hotels and logistics represent "almost 90% of all institutional investment in real estate.
In the first six months of the year alone, there was an investment volume of over 600 million euros, however in July and August these figures "almost doubled and there is 1.2 billion euros of investment completed by 2022," he said, also indicating that there is around 1.5 billion euros of investment in the pipeline by the end of the year, thus reaching 2.7 billion euros.
"The Portuguese market has been doing very well over the past six months, unlike other European markets that have clearly been affected by the war, uncertainty, rising costs and interest rates, which is very important in real estate," said van Leuven.
For next year, the managing director of the consulting firm believes there may be a "retraction in the real estate market in terms of volume and especially in terms of values. Right now investors don't really know where the price 'floor' is. In a quality investment it is more difficult to determine where the price is and, therefore, I believe there will be a slowdown in 2023, especially in the first half, but this is my vision", and it will depend "a lot on the energy crisis or the war in Ukraine".
In what concerns the residential area, the responsible referred that "we may eventually be building houses that are not accessible to the Portuguese and that depend a lot on the purchase by foreigners", underlining that there is in fact a problem "for the local population", but that "it is not for lack of interest from developers and builders to build houses for those areas". Eric van Leuven thus points to problems such as licensing, taxes and other obstacles: "it is a problem that has to be solved at a political level", says the responsible.