Prime Yield presents “Investment Guide for SOCIMIs and SIGIs 2023”

Prime Yield - SOCIMI SIGI 2023

Prime Yield, part of Gloval, released the 2023 edition of the “Investment Guide for SOCIMIs and SIGIs”, in which analyses the performance of the Portuguese and Spanish real estate markets in 2022. The document, in its third edition, is developed in association with DLA Piper, and provides, in addition to market perspectives and the economic environment, a legal framework for the activity of REITs in both countries. As for the real estate market, the report analyses the performance of the cities of Lisbon and Porto, Madrid and Barcelona, in the housing, office, industrial & logistics, retail and hotel segments.

As for Portugal, the document highlights the good momentum of the national real estate market both in investment and occupation in the residential and commercial segments throughout 2022. In commercial real estate investment, transactions in the year totaled €3.0 billion, 36% more than the previous year, led by office (33% share of the amount invested) and hotels (30%), with retail also standing out (20% of the total). In housing, Prime Yield anticipates a volume of dwellings sold in the country in line with the previous year, which stood at 166,000 units, although with an expected growth of at least 10% in the amount transacted given the increase in house prices. In offices, occupancy had a good year in Porto, with around 57,000 sqm occupied, and breaking record in Lisbon, where the annual take-up amounted to more than 270,000 sqm.

As regards Spain, the “Investment Guide for SOCIMIs and SIGIs 2023″ points to a record year with €17.5 billion of investment in commercial real estate, a volume that exceeds in more than 40% the best year ever, which was 2019 (€12.2 billion) and that grows almost 60% facing the transactions of 2022. In Spain, alternative assets led the investment, with a 31% share of the amount, worth €5.4 billion, and more than doubling activity compared to last year. Offices, hotels, and retail each generated around 20% of the investment volume accounted for in 2022.

Regarding the outlook for investment this year, since 2023 will be in contrast to an exceptional year, which in the case of Spain even set a new record, and that we are going through a period of economic turmoil, expectations point to a cooling down in investment volume to around €2.5 billion in Portugal and €12 billion in Spain.


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