Commercial Real Estate Investment in Portugal Reaches €1.26 Billion in First Half of 2025
Investment in Portuguese commercial real estate reached €1.26 billion in the first half of 2025, a 70% increase compared to the same period last year, marking the best semestral performance in five years. The findings were published today in the Marketbeat Portugal Autumn 2024 report by the real estate consultancy Cushman & Wakefield.
The report's data indicates a significant market recovery, with the consultancy suggesting that if the current investment pace continues, the total volume for 2025 is on track to surpass the figures recorded in 2024. The analysis is based on transactional data collected across all commercial real estate sectors in Portugal, including office, retail, industrial, and hospitality, from January to June 2025.
According to the study, more than 40 transactions were completed during the first semester, with an average deal size of €29 million. The five largest transactions alone accounted for 50% of the total investment volume, highlighting the market's reliance on high-value deals. The retail sector was the most dominant, capturing 47% of the total capital, followed by the hotel industry, which attracted 27% of the investment.
Foreign investment was the primary engine of growth, representing 65% of the total volume. European capital was particularly prominent, accounting for 90% of the foreign funds invested. Investors from Spain and the United Kingdom were the most active, collectively responsible for more than half of the international capital inflow during this period.
Eric van Leuven, Managing Director of Cushman & Wakefield in Portugal, stated that “the data from the first half of 2025 confirm a solid recovery of commercial real estate investment in Portugal.” He noted that “the sectoral diversity, the weight of large-scale operations, and the continued attractiveness for foreign capital — especially European — reinforce the confidence of investors.”
The positive momentum appears to be carrying into the third quarter. Van Leuven referenced the recent acquisition of the Livensa Living portfolio by Nido Living in September, a major transaction valued at approximately €300 million, as evidence of the sustained market activity. “The maintenance of this rhythm in the third quarter...sustains the estimate that the annual investment volume could surpass that registered in 2024, consolidating a positive trend,” he concluded.
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The report from Cushman & Wakefield provides a comprehensive overview of market activity, analyzing trends by sector, geography, and investor origin. The strong performance in the retail and hospitality sectors suggests a renewed confidence in the Portuguese economy's consumer and tourism segments. The continued dominance of foreign capital underscores Portugal's position as an attractive destination for international real estate investors.
The National Statistics Institute (INE) has not yet released its official figures for the same period, but preliminary economic indicators have shown positive growth in the services and tourism sectors, which aligns with the investment trends reported by the consultancy. The Bank of Portugal has maintained a stable economic outlook, though it continues to monitor inflationary pressures and their potential impact on the property market.
The Ministry of Economy has not issued a direct comment on the report, but has previously stated its commitment to fostering a favorable investment climate. The strong H1 2025 results are likely to be viewed positively by government bodies as a sign of economic health and investor confidence in the country's stability.
Cushman & Wakefield is expected to release its full-year market analysis in early 2026, which will provide a complete picture of the market's performance throughout 2025. The current data suggests a significant rebound from the more cautious investment climate of the past few years.
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