Investment in commercial real estate in Portugal reached €1.8 billion by the end of the third quarter of this year, an increase of 60% compared to the same period last year, according to Savills' Market Outlook Q3 2025 report.
After a cycle marked by readjusted expectations caused by rising interest rates, the market is now beginning to show signs of stabilisation, with a more consistent recovery in activity. In the third quarter alone, investment volume amounted to €572 million, representing a 50% increase compared to the third quarter of 2024.
In the balance sheet for the first nine months of the year, the increase in the average volume per transaction also stands out, rising 47%, reflecting a greater concentration of capital in each operation. In cumulative terms, the amount invested exceeds the average for the last three years by 35%.
Pedro Figueiras, Head of Capital Markets, comments that "2025 has shown solid performance, marked by consistent growth in investment levels across all sectors, which allows us to anticipate that it could end up as the third or even second best year ever. In line with the dynamism of the national economy, the Portuguese commercial real estate market continues to attract the attention of an increasingly diverse base of global investors with different capital profiles. At the same time, there has been a notable increase in liquidity and appetite on the part of domestic investors."
Retail and hospitality lead investment
In the first nine months of the year, retail and hospitality played a central role in the dynamics of real estate investment, accounting for more than half of the total volume invested, with year-on-year growth of 99% and 21%, respectively.
Within the retail segment, shopping centres led the way in attracting investment, exceeding €500 million, a sign of the consolidation of this type of asset among institutional funds and private equity investors.
The office market also attracted capital again, benefiting from a combination of resilient occupancy rates and a shortage of quality product in the most central areas. At the same time, alternative assets, particularly student residences, reinforced their attractiveness, driven by continued demand in academic hubs such as Lisbon, Porto and Coimbra.
Until September, investment funds and real estate asset management companies accounted for more than half of the volume traded. Institutional investors remained active, with a greater focus on the office and retail segments. Prime yields stabilised in most segments in the third quarter, with compression in assets such as supermarkets and PBSA, in a context of high demand, limited supply and stable rents.
