Portugal among the most sought after destinations for real estate investment in 2024

Global real estate investment is expected to increase in 2024, reaching a peak in the third quarter, predicts Savills World Research, which points to Portugal as “one of the most sought after destinations due to its tourism potential”.

“Researchers at Savills predict a more positive property investment environment in 2024, with 57%, on average, expecting a moderate to strong increase in investment activity next year, although this figure will rise to 70% of respondents regarding to multifamily residential properties and to 66% in terms of industrial and logistics properties”, says the international real estate consultancy in a statement released this Thursday.

Thus, Savills expects “investment activity to increase in the third quarter of 2024, with the recovery to be driven by a number of important markets, including the US and the UK”.

The real estate consultancy is “more optimistic regarding activity in global residential markets, particularly in the multifamily sector, where demand exceeds supply in many areas, and in the logistics sector, driven by its strong fundamentals”: 90% of researchers at Savills forecast increases in rental prices in the multifamily segment and 81% expect increases in the residential market in general.

In the logistics segment, 92% of respondents expect rental values to rise or remain stable, in a context of resilient consumer demand and an expanding production base following the Covid-19 pandemic.

For the office and retail segments, the majority of Savills researchers anticipate “stable or increasing rental values in the prime real estate market”, whether in prestigious office spaces in city centers (73% predict an increase values) or quality retail outlets with a strong influx of national visitors or tourists (81%).

In the secondary office market, 70% of respondents expect values to remain stable or fall next year, with “any increases in rents probably depending on the updating of these properties”.

Quoted in the statement, the director of Savills World Research, Eri Mitsostergiou, states that “2024 should be a much better year for real estate investors worldwide, with a sustained recovery expected as yields become more attractive, rents prime prices rise and the revaluation of prices begins to realign the expectations of buyers and sellers in markets where this has not yet occurred”.

In turn, the head of research at Savills Portugal, Alexandra Portugal Gomes, states that, “for 2024, the projections are slightly more optimistic, still with a very careful risk analysis on the part of investors”.

“We will certainly continue to see greater portfolio diversification as a strategy adopted by investors, directing their investment towards alternative segments such as residential, senior living, healthcare and student housing. Furthermore, ESG criteria and decarbonization will also take on greater prominence, as, as investors become more aware of environmental, social and governance aspects, they will look for assets that offer a high financial return and are aligned with their values”, he adds.

Source: Observador