Portuguese Real Estate Investment Surges 78% to €1.23 Billion in First Half of 2025
Commercial real estate investment in Portugal reached €1.23 billion in the first half of 2025, marking a 78% increase compared to the same period last year, according to a report released by the consultancy firm CBRE. The firm stated that the market is demonstrating “clear signs of growth” this year.
The significant year-on-year growth is attributed to a stronger performance in the first half of 2025 compared to the same period in 2024, which was still recovering from the effects of interest rate hikes. The volume was driven by several high-value transactions in the retail and hospitality sectors, which have been the primary drivers of investment in Portugal for the last three years.
CBRE noted that its initial forecast for 2025 projected a total investment volume of approximately €2.5 billion, an 8% increase from 2024. However, based on the performance in the first six months and the current pipeline of projects, the consultancy now anticipates that the final figure will “with high probability” exceed the initial projection.
The report highlights that investors are focusing on sectors with strong fundamentals, such as retail and hospitality, supported by more favorable financing conditions. International capital continues to play a dominant role, accounting for over three-quarters of the investment in the last decade. A recent CBRE survey indicated renewed optimism among European investors, with over 90% planning to maintain or increase their acquisition activities in 2025.
For the first time, Portugal has been listed as a top European investment destination in the study. Francisco Horta e Costa, Managing Director of CBRE Portugal, stated in a communication to the Lusa news agency that the first half of the year “confirms the sustained attractiveness of the commercial real estate market in Portugal.”
He added that “the greater national liquidity and the European spotlight reinforce the confidence in an even more dynamic second semester.” The data points to a continued positive trajectory for the country's real estate sector, attracting both domestic and international attention.
The figures from the first half of the year suggest a robust market that has overcome the recent economic pressures. The retail sector's performance is linked to strong consumer spending, while the hospitality sector continues to benefit from Portugal's thriving tourism industry.
The increase in investment is expected to have a positive impact on the broader economy, contributing to job creation and development in key sectors. The government and financial institutions have noted the trend, with many analysts pointing to Portugal's stable economic environment as a key factor in attracting investment.
The CBRE report is one of the first major assessments of the 2025 market, and its optimistic outlook is likely to further boost investor confidence. Future reports from other financial institutions and government bodies are expected in the coming months, which will provide a more comprehensive picture of the economic landscape.
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