Portugal's Retail Real Estate Booms with Over €1B Invested, Lisbon Prime Rents Up 60%

Lisbon & Porto Drive Retail Boom: CBRE Reports €1B+ Investment and Soaring Rents

A new report from CBRE confirms that Portugal's retail real estate sector is experiencing a period of sustained growth, with investment surpassing €1.1 billion in 2024 and a robust €398 million already recorded in Q1 2025. For foreign investors, this signals a market with strong fundamentals, driven by a massive tourism influx and sharp increases in prime rents, such as the 60% surge seen in Lisbon's Chiado district over the last decade.

The data indicates a clear recovery of investor confidence and highlights the attractiveness of Portuguese retail assets, from high street shops to burgeoning retail parks.

What Foreign Investors Need to Know

According to Carlos Récio, head of retail at CBRE Portugal, the market is in a "moment of reinvention." Key drivers include the high demand from international brands and the reconfiguration of retail spaces to meet modern consumer needs. The Food & Beverage sector is a standout performer, accounting for 45% of new openings in Lisbon in Q1 2025. However, the primary challenge for new entrants is the "scarcity of prime spaces" in sought-after urban locations like Chiado, leading to intense competition for the best assets.

Actionable Steps for Today's Buyer

• Target High-Growth Corridors: Focus on prime high street locations in Lisbon (Chiado, Avenida da Liberdade) and Porto (Rua de Santa Catarina) where rent appreciation is highest.
• Explore Retail Parks: With the demand for convenience, retail parks represent a growing and highly profitable sub-sector with more development potential than saturated city centers.
• Capitalize on Tourism: With over three tourists per resident in Lisbon, investing in assets that cater to tourist spending, particularly in F&B and experiential retail, is a strong strategy.
• Identify Local Hubs: Look beyond purely tourist zones to emerging residential-commercial areas like Santos in Lisbon, which offer a stable, local customer base.

Explore opportunities with realestate-lisbon.com.