The global investment value in the three countries grew by 36 percent in 2022 over the previous year and reached the aforementioned EUR 31.7 billion, according to a report by Savills, a real estate consultancy operating in the Americas, Europe, Asia Pacific, Africa and Middle East, released today.
Portugal was the country with the largest increase, about 67 percent, in the volume of real estate investment recorded in 2022 compared to the previous year, reaching 3.3 billion euros.
Spain accounted for 52 percent of the total (16 billion euros) and saw an increase of 39 percent, according to Savills, which predicts a lower investment volume in this region for this year, but still outperforming expectations. the rest of the continent.
Italy, in turn, registered an investment of 11.6 billion euros, 26 percent more than the previous year.
In 2022, the Southern European region also absorbed a larger percentage of the continent’s total real estate investment, with 11 percent up from 6.0 percent in 2021 and more than the 7.0 percent it had averaged over the past five years.
The recovery of domestic consumption after the pandemic and better protection against rising energy prices than in the rest of Europe contributed to these results, the real estate advisor believes.
Cross-border investment reached €18.7 billion, 59 percent of the total amount invested in Southern Europe and the highest volume ever recorded.
Most of the foreign capital invested in the region came from other parts of Europe (23 percent) and the Americas (15 percent).
According to Savills, market fundamentals will remain strong and attract investors, particularly in non-first home ownership.
The adviser also points out that throughout Southern Europe, the structural imbalance between the supply and demand of housing and logistics assets will promote the growth of the rental market, or at least its stabilization.
He also believes tenant demand will continue to support real estate investment in this region.
Source: DN
