Portugal’s commercial real estate market is proving to be one of Europe’s most resilient and dynamic sectors, with investment volumes in 2024 already pointing toward a record-breaking year ahead. Despite global uncertainty, investors are showing growing confidence in the Portuguese market, attracted by strong fundamentals and robust opportunities across retail, offices, and hotels.
Investment Surges by 72% Through September
According to the latest data from Worx, investment in Portugal’s commercial real estate soared by 72% through the first nine months of 2024 compared to the same period last year. By September, €1.86 billion had already been invested, with projections suggesting the full-year total could reach between €2.2 and €2.5 billion by the end of 2025 – potentially surpassing the results of 2024.
Retail Leads the Pack, Hotels Gain Ground
Retail remains the star of the show, attracting the largest share of capital with €671 million invested so far, equivalent to 36% of total commercial property investment. The hotel sector is also thriving, with nine major hotel deals totaling €396 million – 21% of the market. This reflects the huge appeal of Portugal’s tourist industry and its continued recovery post-pandemic.
Lisbon Office Market Maintains Allure Despite Dip in Absorption
While the Lisbon office market saw a 22% drop in absorption (131,200 m²) compared to the previous year, appetite for quality office space remains high. The Central Business District (CBD/zone 2) continues to dominate demand, accounting for 40% of office take-up, followed by the vibrant Parque das Nações (zone 5) with 22%.
Looking ahead, Worx forecasts that office occupation could reach up to 200,000 m² in 2025, especially as prime rents in the most sought-after zones like Prime CBD (zone 1) and the Historic Zone (zone 4) hit new all-time highs. This trend signals both a healthy pipeline of projects and global occupier interest in Lisbon as a business destination.
Solid Economic Foundations and International Interest
Portugal continues to attract both domestic and international investors, drawn by its stable economy, strategic location, and the growing sophistication of its commercial property offerings. As international brands expand their presence and innovative new developments come online, the market is poised for further growth.
Portugal’s Real Estate Outlook: Resilient and Ready for More
Despite challenges in the broader economic landscape, Portugal’s strengths — including its stable fundamentals and desirable lifestyle — keep capital flowing into commercial real estate. With investment volumes expected to surpass this year’s impressive figures, 2025 is shaping up to be another milestone year for Portugal as a top-tier European real estate market.
For those considering a stake in Portugal’s commercial property, the message is clear: the market remains robust, diversified, and full of opportunity.
