Lisbon & Porto Retail Real Estate Booming: CBRE Report Reveals Sustained Growth and Soaring Rents

Lisbon & Porto Retail Real Estate Booming: CBRE Report Reveals Sustained Growth and Soaring Rents

For foreign investors eyeing the Portuguese market, a new report from global real estate giant CBRE confirms that the retail sector is not just recovering—it's thriving. Investment has roared back to pre-pandemic levels, with over €1.1 billion flowing into the sector in 2024 and a strong start to 2025, signaling a prime opportunity for those looking to capitalize on commercial real estate.

The report pinpoints soaring rental income and a powerful tourism boom as key drivers, especially in Lisbon and Porto. For an investor, this translates to strong potential returns and asset appreciation in high-demand urban areas.

The numbers speak for themselves. Prime rents in Lisbon's Chiado district have jumped by 60%, while Porto's main retail artery, Rua de Santa Catarina, has seen an incredible 183% valuation increase. "This performance demonstrates the strength of retail in Portugal, which continues to attract benchmark operators," states Carlos Récio, head of retail at CBRE Portugal. This indicates a competitive, high-value market where securing the right property can yield significant returns.

While high streets and shopping centers are hot, the report also highlights the rising importance of retail parks, which cater to a growing demand for convenience and accessibility, offering a diversified investment opportunity beyond traditional city-center shops.

• Focus on Prime Locations: The scarcity of prime space in Lisbon and Porto means competition is fierce. Target high-traffic areas like Chiado, Baixa, and Avenida da Liberdade in Lisbon, which are magnets for both tourists and locals.
• Analyze Tourism Impact: With Lisbon hosting over three tourists per resident, retail linked to hospitality and experiences, particularly Food & Beverage, offers a lucrative angle.
• Consider Diversification: Look beyond the high street. Retail parks are showing strong growth and can offer more competitive operating costs and high-yield potential per square meter.
• Act on Market Data: The CBRE report provides clear data on rental growth. Use this intelligence to inform your financial models and identify undervalued assets before they peak.

Explore opportunities with realestate-lisbon.com.