Investment in commercial property in Portugal reached 1.2 billion euros in the first six months of the year, 69% more than in the same period in 2024, according to Savills' latest Real Estate Market Overview study.
A total of 36 transactions were finalised during the first half of the year, in line with the number of deals closed in the same period in 2024. The consultancy estimates that the market will end 2025 with higher investment volumes than in 2024.
In this period, the retail sector was the leading segment in terms of investment volume during the first half of 2025, totalling 616 million euros. The resurgence of investor interest in this sector is largely based on the recovery in footfall and sales volumes in shopping centres, along with sustained consumer demand, driven by tourist flows that continue to break records.
Savills also highlights the hospitality sector, with a total investment volume of 330 million euros in the first half of the year, up 16 per cent on the previous year. The sector continues to be one of the main drivers of the Portuguese commercial investment market and is expected to maintain its momentum. With a strong pipeline of projects, particularly in Lisbon and Porto, investors' focus remains on repositioning and remodelling existing assets, reflecting a strategic shift towards value creation.
At the end of the first six months of the year, the office market recorded an investment volume of 134 million euros, reflecting an increase of 11 per cent compared to the same period in 2024. This amount represents 11 per cent of the market share of the total investment volume in the first half of the year, showing moderate growth, albeit conditioned by the limited availability of core assets.
The office sector continues to face a clear imbalance between the expectations of buyers and sellers, which has impacted the pace of transactions and reinforced investor selectivity. Despite these constraints, continued demand and the consolidated presence of an international business community demonstrate the resilience and underlying solidity of the office market.
Logistics, with 111 million euros, gained a 9% market share by the end of the first half, with transaction volumes remaining relatively contained compared to the dynamics of the occupational market. Seven deals were closed during the period, four of which involved the acquisition of logistics platforms by international capital, with an average value of 21.7 million euros.
With regard to the origin of the capital invested, the first quarter was marked by a predominance of capital from investment funds and national institutional investors. In the second quarter, cross-border investment once again took the lead, accounting for around 85 per cent of the market share, with particular emphasis on the amounts coming from France, Spain and the United Kingdom.
In the first six months of the year, real estate investment funds and asset management companies remained among the most active categories of investors in the market, directing their capital towards hotel properties, office buildings, shopping centres and logistics assets, indicating a strategic decision to invest in sectors with operational strength and growing demand.
Pedro Figueiras, Head of Capital Markets at Savills Portugal, comments that "the first half of 2025 proved to be very positive for the commercial property investment market in Portugal, with significant growth compared to the same period last year. The retail and hotel sectors remain particularly dynamic, reflecting a high potential for expansion sustained by the solid market fundamentals that characterise the Portuguese market. Despite the fact that the global context continues to impose a more prudent approach and prolongs decision-making processes, the trajectory of investment growth is expected to continue throughout the year."
