Real estate investment in southern Europe (Spain, Italy and Portugal) reached its record figure in 2022, with 31,700 million euros, representing an increase of 36% compared to 2021.
Spain accounted for 52% of the total (16,000 million euros), according to a report by the consultancy Savills, which forecasts a lower volume of investment in this region by 2023, although with a better performance than expected for the rest of the continent.
The Southern Europe region recorded its largest share of total real estate investment on the continent in 2022, with 11% compared to 6% in 2021 and above an average of 7% in the last five years.
The recovery in domestic consumption after the pandemic, greater protection against energy price increases and a greater increase in GDP compared to the European average boosted this result.
In Spain, the volume of investment in the real estate sector reached 16,600 million euros in 2022, representing an increase of 39% over the previous year, while Portugal was the country with the highest increase: 67% more, with 3,300 million euros.
Italy, meanwhile, recorded an investment of 11,600 million euros, 26% more.
Cross-border investment reached €18.700 billion, 59% of the total amount invested in Southern Europe and the highest volume ever recorded.
Most of the foreign capital invested in the region came from elsewhere in Europe (23%) and the Americas (15%).
According to Savills, market fundamentals will continue to be strong and continue to attract investors, particularly in alternative residential assets.
The consultancy also points out that, throughout southern Europe, the structural imbalance between the supply and demand of housing and logistics assets will favor the growth of rents or, at least, their stabilization.
It also believes that tenant demand will continue to support the investment market in the region.