With a total of €8.3 billion in investments in the first semester of 2024, the Southern European regions together recorded a 5% increase in volumes compared to the same period last year. Italy, Spain, and Portugal displayed varied market dynamics, however Hospitality emerged as the main sought after asset class in each market, followed by an increasingly attractive Retail sector and by Logistics and Living which continue to gain a strong interest but are constrained by a lack of supply in line with institutional standards and a gap between buyers and sellers’ expectations.
Portugal Investment Market
In the first half of 2024, a total investment volume of 670€Mn confirmed expectations of lower activity in CRE (-9% YoY), as the gap in price expectations between sellers and buyers slowly narrows.
Capital allocation by sector reflected the increased interest in Hospitality, while Retail accounted for the highest number of deals, with several more currently under negotiation. There is also a significant interest in the Purpose-Built Student Accommodation (PBSA) segment (which contributed to its significant share within the Other sector), as well as in Industrial & Logistics, were the lack of quality assets available for sale continues to hinder transaction volumes.
Recovery remains in sight for the second half of the year, driven by strong economic fundamentals and occupational activity.
