The global value of investment in Southern Europe (Portugal, Spain and Italy) grew by 36% in 2022. Portugal was the country with the highest increase, around 67%.
Real estate investment in southern Europe (Spain, Italy and Portugal) reached a record value in 2022, with 31.7 billion euros, and the Portuguese market was the one that recorded the greatest increase, according to data from the consultancy Savills.
The global value of investment in the three countries grew by 36% in 2022, compared to the previous year, reaching the aforementioned 31.7 billion euros, indicates in a report by Savills, a real estate consultancy that operates in the Americas, Europe, Asia-Pacific , Africa and Middle East, released this Sunday.
Portugal was the country with the highest increase, around 67%, in the volume of real estate investment registered in 2022 compared to the previous year, reaching 3.3 billion euros.
Spain represented 52% of the total (16 billion euros) and had an increase of 39%, according to Savills, which foresees a lower volume of investment in this region this year, but still with a better performance than expected for the rest of the continent.
Italy, in turn, registered an investment of 11.6 billion euros, 26% more than the previous year.
In 2022, the region of Southern Europe also absorbed a greater percentage of total real estate investment on the continent, with 11% against 6% in 2021 and above the 7% that had averaged 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 consultant.
Cross-border investment reached €18.7 billion, 59% 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%) and the Americas (15%).
According to Savills, market fundamentals will remain strong and attract investors, particularly in non-first-time residential assets.
The consultant also points out that, throughout southern Europe, the structural imbalance between supply and demand for housing and logistics assets will favor the growth of the rental market or, at least, its stabilization.
He also believes that tenant demand will continue to support real estate investment in this region.
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Source: Lusa Agency
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