Foreign investors accounted for 76% of Portugal’s real estate investment volume in the second quarter of 2026, underlining the continued appeal of the country’s market despite a more uncertain international environment.
According to the latest Dils Recap, a Business Intelligence initiative from Dils’s Advisory team, Portugal’s commercial and residential real estate sectors attracted €1.4 billion in investment during the first half of the year, representing an 11% increase compared with the same period in 2025.
However, quarterly activity slowed, with investment volumes reaching €462 million in Q2, 18% below the same period last year.
“The second quarter confirms the resilience of the Portuguese real estate market. Despite the temporary reduction in transaction volumes, investment reached €1.4 billion in the first half of the year, 11% above the same period of 2025, in a context of greater international uncertainty”, said Pedro Lancastre, CEO of Dils Portugal.
“The weight of foreign capital in the largest transactions demonstrates that Portugal continues to be recognised as a competitive market with solid fundamentals”, he added.
Core and core-plus strategies remained dominant during the quarter, accounting for more than 80% of invested capital. Nevertheless, Dils highlighted a growing diversification of investor approaches, with value-add and opportunistic strategies gaining relevance.
Hospitality and industrial & logistics lead investment activity
Hospitality and industrial & logistics were the strongest-performing investment sectors in Q2, accounting for 36% and 26% of total investment volume, respectively.
The hospitality sector continued to attract significant capital, with first-half investment surpassing the annual volumes recorded in both 2024 and 2025. Among the largest transactions completed during the quarter was the acquisition of a 72% stake in the Corinthia Lisbon for €150 million, as well as the sale of eight assets from Project NAU for €90 million, the acquisition of 50% of Aqua Portimão for €60 million, and the sale of the Santiago de Alfama Boutique Hotel for €22 million.
Industrial & logistics also maintained strong investor demand, supported by occupier requirements for modern facilities with improved technical specifications. The sector recorded 134,000 sqm of take-up during the second quarter, although first-half activity remained around 7% below the same period of 2025 due to limited availability of suitable stock. Key transactions included the 34,770 sqm occupation by ID Logistics in the Montijo–Alcochete area and the take-up of 25,000 sqm at Panattoni Park Valongo.
Retail investment reaches €417 million in H1
Retail remained one of Portugal’s most attractive investment segments, reaching approximately €417 million in cumulative investment during the first half of 2026, although this represented a 30% decrease compared with the previous year.
During the second quarter alone, retail investment totalled €77 million. Shopping centres continued to account for the highest prime rents, at €130 per sqm per month, followed by food retail (€15 per sqm per month), retail parks (€13 per sqm per month) and standalone units (€11 per sqm per month).
The high street segment continued to benefit from international retailer expansion, particularly in Lisbon, where new openings by Max Mara Weekend, Bottega Veneta and Manteigaria reinforced activity on Avenida da Liberdade and Rossio. Prime rents in Lisbon’s high street market increased to €155 per sqm per month, representing an 11% year-on-year growth. In Porto, prime rents remained stable at €85 per sqm per month, with new openings including Parfois, Brera and Honest Greens.
Office market shows signs of recovery
The office sector recorded one of its lowest investment volumes in recent years, with €21.7 million transacted during Q2 and €62.2 million in the first half of 2026.
Despite subdued investment activity, occupier markets showed signs of improvement. Lisbon recorded 38,050 sqm of take-up during the quarter, representing a 25% increase compared with Q1, supported by the occupation of around 9,000 sqm by iCapital at Fidelidade’s new headquarters. However, demand remained fragmented, with only eight of the 41 deals completed in Lisbon involving spaces above 1,000 sqm.
Two new office buildings were completed during the quarter – Fidelidade’s headquarters and Campo Novo’s Building 1 – adding around 49,700 sqm to Lisbon’s office stock. Prime rents remained stable at €32 per sqm per month in Lisbon’s CBD.
Porto’s office market recorded 12,366 sqm of take-up in Q2, a 64% increase quarter-on-quarter, driven by the occupation of approximately 6,150 sqm by SNS and 2,100 sqm by FlexOffices at Latino Coelho 85. Prime rents remained unchanged at €21 per sqm per month.
Stable yields reflect investor confidence
Across the investment market, yields remained stable during the second quarter, signalling continued investor confidence, although buyers are becoming increasingly selective regarding asset quality, income security and long-term appreciation potential.
According to Dils, hospitality and industrial & logistics assets continue to benefit from strong market fundamentals, while offices remain in a phase of price discovery.
