CBRE’s 2025 survey identifies Lisbon as a leading destination for European real estate investment. Explore the insights fueling this trend.
In the realm of European real estate investment, Lisbon has emerged as a noteworthy contender, as evidenced by the recent findings of CBRE’s European Investor Intentions Survey 2025, unveiled this past Wednesday. This comprehensive survey elucidates a burgeoning optimism among real estate investors across the continent, with a striking 70% of respondents asserting that the market has either already rebounded or is poised for recovery throughout the year.
The survey further reveals that an overwhelming 92% of investors plan to either sustain or amplify their buying and selling activities, heralding what is anticipated to be a vibrant year for the sector. Notably, Lisbon has secured the 8th position in the European hierarchy of cities deemed most attractive for real estate investment, a testament to its enduring appeal for foreign capital influx.
The data from the European Investor Intentions Survey 2025 indicates that favorable pricing dynamics and enhanced return projections are set to catalyze a widespread uptick in real estate allocations this year. Nearly half of the surveyed investors express intentions to escalate their investments, with approximately 37% anticipating increases exceeding 10%. Conversely, a mere 8% foresee a contraction in their acquisition activities for 2025.
Investment preferences are notably skewed towards sectors such as Housing, Logistics, and Hotels, with the anticipated balance of premiums and discounts reflecting this trend. Housing, for instance, is projected to command a premium of 10% more in 2025 compared to the previous year, while Hotels and Logistics are expected to see increases of 3% and 1%, respectively. Intriguingly, for the first time in CBRE’s extensive studies on investment intentions, Housing has emerged as the sector of choice, garnering 32% of investor preference, driven by the expectation of escalating demand from occupiers over the next three years. Despite a slight decline from the previous year, the logistics sector remains robust, capturing 27% of investor interest, followed by the office sector at 16%.
It is imperative to note that, collectively, Housing and Logistics account for approximately 60% of investment intentions. However, in the Portuguese context, retail and hospitality sectors continue to dominate, as per CBRE’s findings.
Portugal’s ascendance in investment preferences is particularly noteworthy, as it has, for the first time since 2023, entered the top 10 most attractive cities in Europe for investment, securing the 8th position. This surge can be attributed to a renewed cross-border interest in the Portuguese market. London retains its supremacy at the top of the ranking, with Madrid climbing to the second position. Furthermore, Portugal is recognized as the 6th country offering the most favorable return on investment for foreign investors, according to the perceptions of those surveyed. The allure of relatively high returns, coupled with a robust sector performance, continues to present compelling investment opportunities in this vibrant market.
