Investments in European commercial real estate fell by 57%

In the first half of the year, investment in commercial real estate in Portugal exceeded 700 million euros, up 13% year-on-year. However, as noted in WMarket Review Mid-year 2023, Worx's semi-annual review, these trends are at odds with the European market, where investment fell by 57%.

According to the study, between January and June, the hotel sector accounted for the largest proportion of investment, accounting for 39% of total volume - the largest deal was the sale of Dom Pedro Hotels to Arrow Global for €250 million. Second place goes to retail with 11 transactions and investments of 220 million euros, representing 32% of total commercial real estate investments. The largest transaction in this sector and the second largest deal for the half-year was the sale of the Amália portfolio to LCN Capital Partners for 150 million euros.

In the office sector, despite the decrease in demand, active demand is at a stable level.

Worx said retail "will be most affected in the current year 2023 by the level of private consumption, which will grow by only 1.6%." "The retail sales volume index rose 2% in the first 6 months of the year, driven by a 3% increase in the non-food sector. Of note here is the positive year-on-year change of 24% in the online retail sector and 10% in the fashion sector," the report said.

The industrial and logistics sector recorded a space absorption of around 294,000 square meters in the first half of the year, spread over 32 transactions - an increase of 41% compared to the same period in 2022. The average transaction also increased to 9,160 square meters this half year, up from 8,000 square meters last year.