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Investments in European commercial real estate fell by 57%

Investments in European commercial real estate fell by 57%

Инвестиции в европейскую коммерческую недвижимость снизились на 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.

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The consultants note that the trend of increasing supply in this area will continue in the next few years. Thirteen office projects are currently under construction and will bring about 261,000 square meters of office space to the market, of which a significant portion is already pre-booked (47%).

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.

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