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Portugal Investment Figures Q3 2023

Total investment volume decreased up to Q3 2023. However, capital inflow to commercial property reached 1B€ up until Q3 2023.

November 6, 2023 15 Minute Read

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  • Investment turnover reached €260 million in the third quarter (-77% y-o-y) and €1,000 million of capital inflow volume YTD (-45% y-o-y).
  • The hotel and retail sectors stood out in the third quarter, accounting for 44% and 42% of the total investment volume.
  • There is a clear slowdown in the investment market, due to a overly cautious approach of investors and a very sharp increase in interest rates. This contraction has been particularly noticeable in the CORE investment opportunities space. In many European capital cities and Portugal is no exception, prime yields are below financing cost. Up until now investors have moved away from core investment, focusing in Core+ or value add opportunities which offer more attractive returns and potential upside.
  • Nevertheless, European markets are already showing a small recovery, which is expected in Portugal up until Q2 2024.
  • Yields increased over this quarter and are expected to continue its adjustment trajectory up until the year end.