Foreign investment, renovating properties and instability are all on the cards for 2023 according to real estate specialists.
Foreign Investment, Renovating Properties And Instability Are All On The Cards For 2023 According To Real Estate Specialists.
Several factors of uncertainty overshadowed the market in 2022 and are due to persist in 2023, although inflation is expected to decrease in the early months of the year. However, interest rates and yields will keep rising and there should be a slight decrease in consumption. Nevertheless, the idea of a recession is fading and the Portuguese real estate market in particular continues to present strong fundamentals.
Product availability remains low in almost every traditional asset class, and this should continue to drive rent increases in offices and logistics, as well as rising housing prices and rents.
There are also various sectors in the early stages of development or growth, such as student accommodation, senior housing, healthecare and agribusiness, where multiple business opportunities can be foun. It has become inconceivable not to incorporate sustainability criteria in new project and strategies.
Another trend that will mark 2023 will be the continuity and, possibly, the increase of foreign investment in real
estate in Portugal. “Portugal is in a privileged geographical position, far from conflicts, at the same time it continues to be a good base for those who want to live in Europe, just a few hours by plane from the main centers of decision-making while offering good weather, beautiful landscapes, security and a good quality of life. Recently, Americans have stood out as a growing nationality among buyers, something that must be maintained”.
Given the war in Ukraine and its economic consequences, will be unpredictability. “The last few years have taught us that there are unpredictable factors, first of all, the behavior of the largest European economies that can influence the ECB’s actions, and thus determine how the year can go. For better or for worse, we are at the mercy of the international market, which can either mean that 2023 will be an excellent year, or a year with more conservative results”, concludes the head of the UCI in Portugal.
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