Real Estate already expects 1.8 billion euros in business for 2023


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The year 2023 has just begun and the real estate industry already estimates at least 1,800 million euros of investment by December.

A few days after the year began, the real estate sector already has in the pipeline 1.8 billion euros in deals, announced the real estate consulting firm JLL, in a meeting with journalists this Thursday. However, this amount is “volatile,” since “there may be some transactions that end up not happening and others that end up emerging,” warned Maria Empis, head of Work Dynamics at JLL Portugal.

After 2022 closed with a record volume of around 3.4 billion euros, for 2023 at least 1.8 billion euros are already expected, according to JLL. In a survey conducted by the consultancy firm to 75 real estate investors, it was concluded that “Portugal appears as a great refuge”, especially for the quality of life and for being “a country full of opportunities”.

More than half of the investors believe that the volume of investment in the sector will fall by up to 25% by 2023. However, this percentage is due to the sale of the ECS funds, which closed in 2022 for about 850 million euros, representing an exceptional transaction. “If you take this away, investors expect an alignment with 2022, because there is a lot of liquidity in the market and a lot of pressure to invest,” notes Maria Empis.

In terms of yields, most investors expect yields to grow in 2023, but by up to 50 basis points. Another expected trend is a “more difficult meeting between what the buyer wants and what the seller is available to pay”, said the responsible.

Among the various sectors of the real estate market, offices are expected to capture the largest share of investment, ahead of hotels, alternative assets, logistics and retail. More than half of the investors believe that construction costs can be maintained or even reduced.

In the residential market, Maria Empis notes that the market expects “another record year in terms of transaction volume. However, here the opinions are divided between a maintenance of the investment or a reduction of up to 20%. The responsible of JLL points to the “lack of supply” and the “pressure of wanting to buy and not finding the right offer”.

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