H1 property investment up 78% year-on-year to €1.23 billion – consultants
According to CBRE, this increase was "driven by a series of high-value transactions in the retail and hotel sectors, which for three years now have been the main drivers of investment in Portugal".
Real estate investment in Portugal rose 78% year-on-year in the first half of this year to €1.23 billion, according to data from real estate consultancy CBRE.
In a statement, the company said that “commercial real estate investment in Portugal continues to show clear signs of growth in 2025”.
According to CBRE, this increase is due to the fact that, despite 2024 seeing a strong recovery in investment, “after a year marked by the slowdown caused by the interest rate shock, the first half still showed relatively low levels of investment when compared to the second half”.
On the other hand, “the first half of 2025 saw significant investment volume, driven by a series of high-value transactions in the retail and hotel sectors, which for three years now have been the main drivers of investment in Portugal”, the entity highlighted in the same note.
The group also assured that it “closely and continuously monitors the dynamics of the investment market in Portugal”.
CBRE’s forecast at the beginning of 2025 pointed to “a total investment volume in Portugal of around €2.5 billion, which would represent growth of around 8% compared to 2024”.
However, “based on the strong performance recorded in the first half of the year and the projects currently on the market, we anticipate that the volume transacted in 2025 is highly likely to exceed the initial projection, resulting in higher growth than initially estimated”, it said.
According to CBRE data, Portugal is a country “particularly open to foreign investment, and commercial real estate is no exception”, with more than three-quarters of investment in Portugal over the last decade “carried out by international investors”.
As such, the company pointed out that, following the launch of a series of surveys, there has been “a return of optimism in European real estate investment markets, with more than 90% of European investors expecting to maintain or strengthen their acquisition activity this year”.
Furthermore, according to CBRE, “Portugal is, for the first time since this study has been conducted, among the top European investment destinations”.
“The first half of 2025 confirms the sustained attractiveness of the commercial real estate market in Portugal. Investors continue to focus on segments with solid fundamentals, such as retail and hospitality, and are benefiting from more favourable financing conditions. Greater national liquidity and the country’s prominent position in Europe reinforce confidence in an even more dynamic second half”, said Francisco Horta e Costa, Managing Director of CBRE Portugal, in a written statement sent to Lusa.
