Commercial Real Estate Investment in Portugal Reaches €1.26 Billion in First Half of 2025, Marking a Five-Year Record
Portugal's commercial real estate sector recorded an investment volume of €1.26 billion in the first half of 2025, a figure that represents a 70% year-on-year increase and the strongest half-year performance in the last five years. The findings were published by the consultancy Cushman & Wakefield in its 'Marketbeat Portugal Autumn 2024' report, indicating a significant recovery and growing investor confidence in the market.
The report details that the current investment pace suggests the total volume for 2025 could surpass the figures from 2024, signaling a robust market rebound. The data was compiled from over 40 completed transactions, which had an average value of €29 million per deal. The concentration of capital was notable, with the five largest operations alone constituting 50% of the total invested volume, underscoring the impact of large-scale institutional investment.
An analysis of capital allocation by sector shows that retail and hospitality were the most dynamic, attracting 47% and 27% of the total investment, respectively. This highlights the renewed interest in assets tied to consumer spending and tourism, which continue to be pillars of the Portuguese economy. The sustained flow of capital into these areas reflects a positive outlook on their long-term performance.
Foreign investment remained the primary driver of the market, accounting for 65% of the total volume. European capital was particularly dominant, representing 90% of all foreign investment. Within this group, investors from Spain and the United Kingdom were the most significant contributors, responsible for more than half of the international capital invested during the period. This strong presence of European investors points to Portugal's established reputation as a secure and attractive market within the EU.
Eric van Leuven, Managing Director of Cushman & Wakefield in Portugal, stated that the results confirm a solid recovery. “The sector diversity, the weight of large-scale operations, and the continued attractiveness for foreign capital — especially European — reinforce investor confidence,” he noted. Van Leuven also referenced major transactions that have already occurred in the third quarter as a sign of continued momentum. He specifically mentioned the acquisition of the Livensa Living student accommodation portfolio by Nido Living for approximately €300 million in September.
This major transaction, along with the strong performance in the first half of the year, underpins the consultancy's projection that the annual investment volume for 2025 is on track to exceed the previous year's total. Such a result would consolidate the positive trend and reaffirm the market's resilience and appeal to a diverse range of domestic and international investors.
Stay informed on Lisbon property market developments at realestate-lisbon.com.
