Portugal’s commercial real estate investment market has kicked off 2025 with extraordinary momentum, drawing major interest from both domestic and international investors. According to the latest data from CBRE, real estate investment soared by 78% year-on-year to reach €1.23 billion in the year’s first half — a remarkable comeback for a sector previously challenged by rising interest rates.
Investment on the Rise
CBRE attributes last year’s quieter market to the lingering impact of higher borrowing costs, which had kept investment subdued in early 2024. This makes the 2025 surge in the first six months even more significant, marking a clear recovery and a strong return of investor confidence across the sector.
Retail and Hospitality Lead the Way
The consultancy highlights that activity in retail and hospitality continues to be a major driver of growth, with several high-value transactions fueling the upswing. For the third consecutive year, these sectors remain at the forefront, underlining their resilience and long-term potential as pillars of Portugal’s real estate market.
Exceeding Expectations
At the start of the year, forecasts predicted that real estate investment for 2025 could reach €2.5 billion, reflecting an 8% increase over 2024. However, with strong H1 performance and high-profile developments underway, CBRE now anticipates actual figures will surpass these projections, pointing to even higher growth ahead.
International Appeal and Optimism
CBRE’s data also shows that over 75% of Portuguese real estate investment in the past decade has come from international investors. Confidence is on the rise, with more than 90% of surveyed European investors planning to maintain or boost their activity in 2025 — a strong vote of confidence in Portugal as a key destination for commercial real estate investment.
Favorable Conditions for Growth
The positive momentum is further supported by more favorable financing conditions, increased national liquidity, and Portugal’s growing prominence on the European investment map. As retail and hospitality markets benefit from structural strengths, investors are expected to seize new opportunities, ensuring a dynamic and attractive landscape for the remainder of 2025.
With international capital flowing in and sector fundamentals remaining strong, Portugal’s commercial real estate investment market is poised for another record-breaking year. Investors looking for stable returns and growth opportunities should keep a close eye on Portugal as the trend shows no signs of slowing down.
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