According to CBRE, this performance was boosted by several large-scale transactions, especially in retail and hospitality, which have now been the leading sectors for three years in a row.

Looking back, 2024 was already a recovery year after a slowdown triggered by higher interest rates. However, much of the activity came later in the year, meaning that the first half of 2024 was relatively quiet. This helps explain why the beginning of 2025 feels so different. Investment volumes were already strong in the first six months, a sign that confidence in Portugal remains high and that international investors see the country as an attractive and stable market.

At the start of this year, CBRE estimated that total investment would be around 2.5 billion euros for 2025, which would have been a solid 8 percent increase on the previous year. But given how quickly things have accelerated and with several new projects now on the table, it looks increasingly likely that the total will surpass that forecast by a wide margin.

Another crucial point is the continued weight of international investors. In the last decade, more than three-quarters of commercial real estate investment in Portugal has come from abroad. Surveys conducted by CBRE show that optimism is returning across Europe, with more than 90 percent of investors saying they plan to maintain or expand their activity this year. For the first time since CBRE began publishing this study, Portugal has entered the top tier of European investment destinations. This recognition places the country firmly on the map for global capital flows.

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 powerful 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 semester 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. If the current momentum holds, the second half of 2025 could bring an even more dynamic wave of transactions and confirm Portugal as one of the continent’s most exciting and reliable real estate markets.

Disclaimer: This article has been written with the assistance of AI.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes