Real estate consultancy JLL estimates at least 1,800 million euros in investment for 2023, although the amount may change, given the volatility of operations.

The consultant anticipates a “natural” slowdown in the dynamics of demand for both occupation and investment compared to last year, due to the double circumstance of facing worsening economic conditions and “comparing with record levels of activity”. However, it does not anticipate disruptive breaks in terms of transacted amounts and absorption, still predicting that prices and rents may maintain a positive, but smoother trajectory. The low supply replacement capacity, which remains scarce in all segments, is one of the explanations for this behaviour.

“We are not under the illusion that the worsening economic conditions in Portugal and Europe will stop contaminating the real estate market, but, in general, we are very confident that we will maintain good levels of activity in 2023, in line with market dynamics. The base of real estate demand to be satisfied is very large and is also diversified in its motivations, financial capacity, and origin”, says Pedro Lancastre, CEO of JLL.

Even so, the official stresses that the “pace of real estate production should slow down, because even if developers and investors do not anticipate significant drops in demand, there will be greater difficulty in accessing financing for new projects, in a context in which construction costs stabilize and in which licensing takes too long”.

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