Volume of investment in 2022 increased by 67%
Savills real estate investment consultancy reports that Portugal was the country showing the greatest increase in property investment last year. The volume of business leapt 67% on investment of the previous year, reaching €3.3 billion.
Spain and Italy brought up the rear, also recording large increases.
Taken together, Savills saw property investment in southern Europe increase by €31.7 billion, with the overall value in the three countries growing 36%.
But – and this is a significant ‘but’ – 2023 is not expected to bring quite the same degree of enthusiasm.
Overall, Savills believes “market fundamentals will remain strong and continue to attract investors, particularly in non-primary residential assets.
“The consultancy also points out that across southern Europe, the structural imbalance between supply and demand for housing and logistics assets will favour rental market growth or at least stabilisation.
“It also believes that tenant demand will continue to support property investment in this region (meaning southern Europe, not Portugal per se)”, says Lusa.
And this is where the questions will most focus regarding Portugal. With the government’s hugely controversial, and many would say ‘unconstitutional’, housing reforms still under public discussion, but likely to start receiving approval by the end of this week, Portugal’s investment allure has become clouded – not least because of the decision to ‘axe golden visas’.
Again, this aspect of the Mais Habitação programme has been trailed, but nothing approved in parliament, nor apparently set yet in stone by the Council of Ministers. However, last weekend, even this chink of ‘open-endedness’ to change with a text published by the Ordem dos Advogados (Lawyers’/ Bar association).