Porto is rapidly gaining ground as a top destination for international retailers, offering the most competitive prime rents among 16 major European shopping hubs, according to a new report from JLL. As global brands actively seek new markets for growth, Porto’s blend of affordability, booming tourism, and expanding consumer base is making the city a retail hotspot in 2024 and beyond.
Porto Leads on Affordability
JLL’s latest pan-European “Retail City Profiles” study analyzed 16 strategic retail cities, including Antwerp, Barcelona, Berlin, Brussels, Dublin, Frankfurt, Hamburg, Lisbon, London, Madrid, Milan, Munich, Paris, Porto, and Warsaw. Porto stands out with a prime rent of just €1,020 per square meter per year (measured for Rua de Santa Catarina) — the lowest across all cities surveyed. This makes Porto’s rents 38% to 75% lower than those in most other European destinations, such as Brussels (€1,650) and Munich (€4,090). While outlier cities Milan, Paris, and London command extraordinary rents of approximately €20,000–€21,000/m² per year, Porto offers an unmatched value proposition for retailers.
International Brands Flock to Porto
Growing demand from global retailers coincides with surging tourism — Porto welcomed a record 7.4 million visitors in 2024 — a rise in foreign residents, and robust consumer spending, expected to reach €11 billion in 2025 and grow an average 3.8% per year through 2029. The study highlights recent store openings by fashion and lifestyle brands such as Carolina Herrera, Mango Teen, luxury brands like Minotti and Bentley, and popular F&B concepts including Starbucks and Portuguese Bakery. Discount and low-cost retailers like Normal and Action are also expanding their presence.
Lisbon Remains Competitive, Sees Strong Brand Interest
Lisbon, Portugal’s capital, also ranks among the most affordable retail cities in Europe, with prime high street rents (Rua Augusta/Rua Garrett) at €1,740/m² per year — 71% higher than Porto, but still 28% to 57% lower than most European peers (excluding Milan, Paris, and London). Lisbon drew 8.5 million visitors in 2024, of which 6.5 million were international tourists. Retail sales in Lisbon are expected to top €19.4 billion in 2024 — 29% of Portugal’s national total — growing at an average of 3.7% annually until 2029.
Brand appetite remains strong, with both new market entries and expansion by established players, leading to increased competition for the best retail spaces and influencing upward rent trends. The city is seeing significant new openings, including one of the world’s largest Zara flagships in Rossio, and continued interest from brands like Brownie, Parfois, Pandora, New Era, as well as luxury operators who favor Avenida da Liberdade. Meanwhile, discount brands are growing in non-prime and shopping center locations.
European Retailers Stay Resilient Amid Headwinds
JLL’s report finds European retail remains robust despite recent inflation and macroeconomic pressures. In the first nine months of 2025, 219 store openings were recorded across the 16 markets analyzed, only 11% fewer than the exceptional 2024 figure. New openings and brands entering these cities for the first time accounted for 26% of all new stores, underscoring retailers’ appetite for untapped and profitable markets.
Porto’s combination of attractive rents, a growing consumer base, and dynamic tourism puts it at the forefront of Europe’s retail expansion, while Lisbon remains highly competitive and sought after by international brands. As retailers chart their European expansion strategies, both Portuguese cities are cementing their place at the center of the continent’s retail renaissance.
