Commercial real estate investment reached 1.26 billion euros between January and June, marking a 70% increase compared to the same period last year and achieving the best performance for a half-year period in the last five years, according to a report released today.
In its semi-annual Marketbeat Portugal publication, consultancy Cushman & Wakefield suggests that if the current pace continues, 2025 might surpass 2024 levels, indicating a potential market recovery.
The consultancy notes that “the five largest transactions accounted for half of the invested volume,” with over 40 deals executed at an average value of 29 million euros each.
The sectors with the highest capital investment were retail and hospitality (47% and 27%, respectively), with foreign investment making up nearly two-thirds (65%).
Regarding the origin of the invested capital, 90% of foreign investment was European, primarily from Spain and the United Kingdom, “responsible for over half of the international capital.”
Quoted in the document, Eric van Leuven, the general director of Cushman & Wakefield in Portugal, remarked that the data until June “confirms a solid recovery of commercial real estate investment in Portugal.”
He added that transactions like the acquisition of Livensa Living’s portfolio by Nido Living this month, valued close to 300 million euros, reinforce the projection “that the annual investment volume could surpass that recorded in 2024.”
In the office market, up until August, 113,840 square meters were placed in Greater Lisbon, a 26% year-on-year decrease. The main transaction during this period was “undertaken by Banco de Portugal, acquiring two buildings in the Entrecampos project, totaling 32,000 square meters, intended for their future headquarters.”
In Greater Porto, the absorption of 15,630 square meters represented a 64% year-on-year drop and the lowest level in the past eight years.
In retail, 395 new commercial spaces opened, a 5% year-on-year decline, with street commerce accounting for 69% of openings and shopping centers 16%.
Meanwhile, in the industrial and logistics segment, “after reaching a historic high in 2024,” occupational activity fell by 50% to 206,500 square meters transacted, with an average transaction size of 6,500 square meters.
In hospitality, performance until June was positive, “with a widespread increase in key indicators, despite a natural slowdown in growth compared to recent years.”
“In terms of supply, by June 2025, approximately 50 new hotels opened, adding 2,470 rooms to the national supply,” the consultancy reports, most of which are four-star (53%) and five-star hotels (19%).
In this segment, 116 new hotel projects are in planning and/or construction, adding an additional 12,400 rooms, with openings scheduled until 2028, maintaining a focus on higher segments (39% four-star and 45% five-star).
Student housing and coliving continue to be marked by limited supply against growing demand, with five new units completed, providing 1,400 beds, by August.
Private entities now represent 42% of the total student bed supply, with the beds-per-student ratio remaining at 7%.
In the senior segment, total capacity “continues to grow” and reached 106,760 beds, but the consultancy warns that “the pace of new openings has not kept up with the aging population,” with the coverage ratio holding at 14%.
