57 Fall in commercial real estate investment in the European market

In the first half of this year, investment in commercial real estate in Portugal exceeded 700 million euros, 13% more than in the same period last year. However, this is a trend that is contrary to the European market, where investment volume decreased by 57%, reports the biennial study WMarket Review Mid-year 2023, a publication of Worx, which analyzes activity and trends in the industry.

The hospitality industry

According to the study, the hospitality industry was led by investment in Portugal in January-June, accounting for 39% of the total - most notably the sale of the Dom Pedro hotels to Arrow Global for 250 million, the largest deal to date. It was followed by the''retail sector with 11 deals adding 220 million to commercial real estate investments, representing 32%. The deal of this sector and the second largest in this half year is the sale of the Amália portfolio to LCN Capital Partners for 150 million.

Office sector

In the office sector, despite "reduced demand in these months", active demand coming into the market "remains stable".

Retail sector

In relation to''Worx's retail sector notes that "in 2023 it will be hit hardest by private consumption, which will grow at a rate of just 1.6%". "The retail volume index rose 2% in the first 6 months of the year, influenced by a 3% increase in non-food items. The latter highlights a positive year-on-year variation of 24% and 10% in online shopping and fashion apparel respectively," the report said.

Industry & Logistics

And finally, the industrial and logistics sector recorded about 294 thousand square meters (m2) of leased space in the first half of this year, spread over 32 deals in the first half of 2023, "reflecting a year-on-year increase of 41%." The average deal size rose to 9,160 m2 in this''half year compared to 8,000m2 in the same period in 2022.