International funds led real estate transactions in Portugal during 2022, accounting for more than 85% of the total.
US investors lead real estate deals in Portugal
US investment in Portugal Thirdman on Pexels

Over the last decade, the conditions have been in place for international funds to bet all their chips on the Portuguese real estate market, so much so that in 2022 they led real estate transactions. At the top of the list are investors from the USA, the country in the eye of the storm of the current financial crisis.

It was the appetising property prices in Portugal, combined with high liquidity in the market, that led foreign funds to bet heavily on real estate in Portugal. They have invested so much that, according to the head of capital markets at CBRE Nuno Nunes, "real estate funds have a dominant market share in the Portuguese market", which is expected to be more than 85% in recent years, cites Jornal de Negócios.

The truth is that it is not known for certain how much investment funds represent in the Portuguese real estate market, for various reasons, the same newspaper points out:

  • there are many international investors (no public data for consultation);
  • investments are made by complex companies and it is difficult to understand who was responsible for them (whether they are funds or another investment vehicle).

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.