US investors lead property investment deals in Portugal

With the increase in the market liquidity and assets at attractive prices in the Portuguese property market, real estate in Portugal saw a flood of investment from large international funds led by US led investors, a report has revealed.

When questioned on the size of the national and international share in the market of investment funds in the Portuguese real estate market? "This is a question for a million euros", replied Rita Silva, researcher and activist at Associação Habita - making it clear that the actual amount from funds was not known given the complex nature of the investments made by national and international funds, thereby making it challenging to determine the source of the investment or whether it is from another investment vehicle.

International funds led real estate transactions in Portugal during 2022, accounting for more than 85% of the total. Photo by Louis Droege on Unsplash.

"Real estate funds have a dominant market share in the Portuguese market," said CBRE’s head of capital markets Nuno Nunes. "It is estimated that, in recent years, investment by funds has represented more than 85% of the market" .

Even so, market specialists have no doubts that foreigners - be they funds, management companies or other types of companies - will continue dominate real estate operations in Portugal, the same publication states. And, specifically, it is North American investors that are at the top of the list, placing one billion euros on the market (around 37% of the total). The list of the biggest investors in the national real estate market is headed by Blackstone, which led the purchase of the Connect portfolio from Novo Banco for 208 million euros and also the Bond portfolio from M7 for 125 million euros.

The biggest transaction ever in the Portuguese real estate market, the purchase of the Crow project for 800 million euros, was sealed by the North American Davidson Kempner fund.

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