Commercial Real Estate Investment in Portugal Reaches €1.23 Billion in First Half of 2025
Investment in commercial real estate in Portugal experienced a year-over-year increase of 78% in the first six months of 2025, with the total transaction volume reaching 1.23 billion euros. The data was released by the real estate consultancy firm CBRE.
In a formal statement, CBRE noted that 'commercial real estate investment in Portugal continues to demonstrate clear signs of growth in 2025.' The firm attributes the substantial increase to several factors. While 2024 marked a recovery from the slowdown caused by rising interest rates, the investment volume in the first half of that year remained relatively low compared to the second half.
In contrast, the first half of 2025 'recorded a significant investment volume, impulsionado por um conjunto de transações de elevado valor nos setores do retalho e da hotelaria' (driven by a set of high-value transactions in the retail and hospitality sectors). CBRE specified that these two sectors have been the primary drivers of investment in the country for the last three years.
This performance has caused the consultancy to update its annual forecast. At the start of the year, CBRE had projected a total investment volume of approximately 2.5 billion euros for 2025. However, the firm now states that 'based on the strong performance recorded in the first half and the projects currently in commercialization, we anticipate that, with high probability, the volume transacted in 2025 will come to surpass the initial projection.'
The report also highlights Portugal's growing appeal to international investors. According to CBRE's data, foreign capital has accounted for more than three-quarters of the investment in Portugal over the past decade. A recent survey indicated a return of optimism to European real estate markets, with over 90% of investors expecting to maintain or increase their purchasing activity.
For the first time, the study ranked Portugal among the top investment destinations in Europe. Francisco Horta e Costa, the Managing Director of CBRE Portugal, commented that the results confirm the market's 'sustained attractiveness.' He pointed to 'more favorable financing conditions' and 'greater national liquidity' as factors reinforcing confidence for a dynamic second half of the year. Stay informed on Lisbon property market developments at realestate-lisbon.com.
