Lisbon and Porto Retail Rents Skyrocket, Offering Prime Investment Returns
Foreign investors targeting commercial real estate have a clear signal of a booming market, as high-street retail rents in Lisbon and Porto are surging. In Porto's Rua de Santa Catarina, rents have increased by a staggering 183% over the last decade, while Lisbon's Chiado has seen a 60% jump. This growth is fueled by record tourism and strong demand from international brands.
Investment in the sector topped €1.1 billion in 2024, with another €400 million injected in Q1 2025, according to a new CBRE report.
What Foreign Investors Need to Know"The strength of retail in Portugal is undeniable, even with scarce supply in prime locations," says Carlos Récio, head of retail at CBRE. This scarcity is driving up property values and rental yields, creating a competitive but potentially lucrative environment. The Food & Beverage sector is a key driver, accounting for 45% of new shop openings in Lisbon and 73% in Porto, indicating a strong market for restaurant and café spaces.
Actionable Steps for Today's Buyer- Target High-Growth Corridors: Focus on prime streets like Lisbon's Chiado and Avenida da Liberdade, and Porto's Rua de Santa Catarina, where rental appreciation is highest.
- Invest in F&B-Ready Properties: Given the dominance of the Food & Beverage sector, properties suitable for restaurants and cafes in high-traffic tourist areas offer a strong investment thesis.
- Leverage Scarcity: The lack of available prime space means that acquiring a well-located asset can provide significant long-term value and pricing power.
- Follow the Tourists: With tourism being a primary driver, analyze pedestrian flow and tourist density data to identify the most promising micro-locations for retail investment.
Explore opportunities with realestate-lisbon.com.
