Over a billion in commercial real estate

According to data provided by JLL and quoted by idealista, investment in commercial real estate in Portugal from January to September amounted to only 1.050 million euros. This figure indicates a 46% decrease from the same period in 2022. According to JLL, the decline is due to "a more cautious attitude on the part of investors" and "a delay in the completion of many deals, reflecting growing uncertainty due to the macroeconomic and geopolitical environment. "

The global trend is also affecting Portugal. According to Pedro Lancastre, CEO of JLL Portugal, the third quarter results are not surprising, as economic cycles affect the real estate market, and already at the end of the first half of the year there are signs of a slowdown in transactional employment and investment activity. Although inflationary pressures are easing and the ECB did not raise interest rates at its last meeting, there is still a lot of uncertainty about macroeconomic developments and how real estate consumers, whether businesses or families and banks, will adapt.

According to Joana Fonseca, head of strategy consulting and research at JLL, the main impact of the difficult environment is a decline in the volume of deals that are being done. Real estate prices and rents remain stable or even rising, with some adjustments only in certain segments and neighborhoods.

The JLL report indicates that in the third quarter of this year, housing prices in Lisbon remained stable at 4,580 euros per square meter. In Porto, the figure was 3,020 euros per square meter, a slight decrease of 2% compared to the same period last year.

But Pedro Lancastre warns that the most worrying problem is the lack of incentive solutions to stimulate supply growth in the short to medium term, especially in the housing sector. "The creation of new supply should be done by private individuals, but the conditions for realizing such investments must be created," he argues.

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