According to the latest CBRE report, the Portuguese real estate market has seen a significant surge in investment activity so far in 2025. This performance has been driven by several large-scale transactions, particularly in the retail and hospitality sectors, which have now led the market for three consecutive years.
“What we’re seeing reflects Portugal’s fundamental strengths,” explains Cristina Pereira, founder of Residential Advisory Portugal. “International investors recognize that Portugal offers political stability, strategic location, and strong growth potential – exactly what sophisticated capital seeks in uncertain times.”
At the start of 2025, CBRE estimated that total investment would reach around 2.5 billion euros for the full year, an 8% increase on 2024. But with the accelerated pace of activity and several new projects now underway, it seems increasingly likely that the final figure will surpass that forecast by a wide margin.
One crucial factor is the continued dominance of international investors. Over the last decade, more than three-quarters of commercial real estate investment in Portugal has come from abroad. Recent surveys show that optimism is returning across Europe, with over 90% of investors planning to maintain or expand their activity this year. For the first time, Portugal has entered the top tier of European investment destinations, placing the country firmly on the map for global capital flows.
“This commercial confidence directly benefits our residential clients,” notes Cristina Pereira. “When major international businesses invest heavily in Portuguese commercial real estate, it creates infrastructure improvements, job opportunities, and lifestyle amenities that enhance residential property values significantly.”
The retail and hospitality sectors remain the star performers. Retail continues to show resilience, thanks to steady consumer demand and solid fundamentals, while hospitality reflects Portugal’s enduring reputation as one of Europe’s most appealing tourism markets. With financing conditions improving and liquidity levels higher than in previous years, investors now have both the appetite and the means to commit to larger and more ambitious projects.
The message from the first half of 2025 is clear, Portugal’s real estate market is not only resilient but increasingly competitive on the European stage. After navigating a period of global uncertainty, the country has reemerged as a place where investors feel confident to allocate significant capital.
“For our clients considering Portuguese property, timing matters,” advises Cristina Pereira. “We’re seeing a market that’s gaining momentum but hasn’t yet reached peak pricing. Smart buyers understand this window of opportunity won’t remain open indefinitely.”
If the current momentum holds, the second half of 2025 could bring an even more dynamic wave of transactions, further cementing Portugal’s status as one of the continent’s most exciting and reliable real estate markets.
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