In 2022, Portugal witnessed the highest increase, approximately 67%, in real estate investment volume compared to the previous year, reaching 3.3 billion euros. Spain and Italy followed closely behind with significant increases in investment, as reported by a real estate consultancy.
According to Savills, a real estate consultancy operating across various regions, real estate investment in Southern Europe (Spain, Italy, and Portugal) reached a record value of 31.7 billion euros in 2022. The overall investment value in these three countries grew by 36% compared to the previous year. Portugal’s remarkable increase of approximately 67% contributed to this growth, resulting in a total investment volume of 3.3 billion euros.
Spain accounted for the largest share, with 52% of the total investment (16 billion euros), experiencing a 39% increase. Savills predicts a lower volume of investment in the region this year but expects it to outperform the rest of the continent.
Italy recorded an investment of 11.6 billion euros, marking a 26% increase compared to the previous year.
Southern Europe absorbed a higher percentage of the total real estate investment in Europe in 2022, comprising 11% compared to 6% in 2021. This figure also exceeded the 7% average recorded over the past five years. The recovery of domestic consumption post-pandemic and better protection against rising energy prices compared to other European regions contributed to these results, according to the real estate consultancy.
Cross-border investment reached 18.7 billion euros, accounting for 59% of the total investment in Southern Europe and representing the highest volume ever recorded. The majority of foreign capital invested in the region originated from other parts of Europe (23%) and the Americas (15%).
The consultancy also highlights that throughout Southern Europe, the structural imbalance between supply and demand for residential and logistics assets will favor the growth or stabilization of the rental market. It further anticipates that tenant demand will continue to support real estate investment in the region.
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