CBRE Report: Commercial Real Estate Investment in Portugal Reaches €1.23 Billion in H1 2025
Commercial real estate investment in Portugal reached a total of €1.23 billion in the first half of 2025, marking a 78% increase compared to the same period in the previous year. The data, released by the real estate consultancy CBRE, indicates a continued and robust growth trend in the market.
In a formal statement, CBRE explained that the significant year-on-year growth is partly due to the comparatively low investment levels in the first half of 2024, a period still feeling the effects of the slowdown caused by rising interest rates. The firm noted that the market recovery gained most of its momentum in the second half of last year.
The volume in the first six months of 2025 was significantly boosted by a series of large-scale transactions within the retail and hospitality sectors. According to the consultancy, these two areas have consistently served as the primary drivers of investment in Portugal's real estate market for the last three years.
Based on this strong performance, CBRE has updated its outlook for the remainder of the year. The initial forecast for 2025 projected a total investment volume of approximately €2.5 billion. However, the company now states that it is highly probable this figure will be surpassed, leading to a higher growth rate than originally estimated.
The report also highlighted Portugal's appeal to international capital, noting that foreign investors have accounted for over three-quarters of all commercial real estate investment in the country over the past decade. This trend is supported by a recent CBRE survey which found that over 90% of European investors intend to maintain or increase their purchasing activity this year.
In a significant development, the same survey placed Portugal among the top preferred investment destinations in Europe for the first time since the study began. This reflects growing international confidence in the Portuguese market.
Francisco Horta e Costa, the Managing Director of CBRE Portugal, commented on the results. 'The first half of 2025 confirms the sustained attractiveness of the commercial real estate market in Portugal,' he said in a written statement. 'Investors continue to bet on segments with solid fundamentals, such as retail and hospitality, and benefit from more favorable financing conditions.'
He concluded that 'the greater national liquidity and the European spotlight reinforce confidence in an even more dynamic second half.' The strong influx of capital and positive investor sentiment suggest that the market's upward trajectory is set to continue through the end of the year.
Explore investment strategies and opportunities at realestate-lisbon.com.
