Cushman & Wakefield Portugal proudly launches Market Focus, a new annual report offering a comprehensive overview of the Portuguese commercial real estate market. Market Focus Portugal 2026 analyses the performance of the key market segments, highlighting the main trends shaping the commercial real estate sector and our outlook for the year ahead, providing clear insights to support informed decision making.
The study reveals that commercial real estate investment in Portugal totalled €2.85 billion in 2025, representing a year-on-year increase of 17% and the best performance of the past three years. Activity remained dynamic throughout the year, with more than 100 transactions. The five largest deals accounted for approximately 33% of total investment volume, highlighting the importance of large-scale transactions in the market.
Retail led capital allocation, accounting for 30% of total volume, followed by offices (25%) and hospitality (20%), confirming the sectoral diversity of investment. International capital remained dominant, representing 61% of the total, mainly of European origin (88%). Key transactions during the year included the Norte shopping deal, the sale of Livensa’s student housing portfolio, Hotel Miragem Cascais and the Lumnia office building, reflecting broad investor interest across different asset classes.
Occupier market remains resilient
In the office market, Lisbon recorded 204,240 sq m of take-up in 2025, a slight decrease compared to the previous year, mainly explained by the shortage of high-quality supply rather than a lack of demand. Vacancy rates remained very low, particularly in central locations, while prime rents continued to rise, reaching a historic high of €32/sq m/month in the prime CBD. In Porto, activity was more moderate, although signs of recovery are expected in 2026 as new, higher-quality projects enter the market.
Retail once again demonstrated strong resilience. Prime high-street retail locations in Lisbon and Porto maintained extremely low availability rates, supporting rental growth, particularly in the most established areas. Shopping centres continued to report robust sales and footfall, while retail parks strengthened their position as one of the most dynamic formats in the market, accounting for the majority of new supply under development.
In the industrial and logistics segment, despite a decrease in take-up compared to the 2024 peak, demand remained above supply, particularly for modern, efficient assets aligned with ESG criteria. Prime rents continued to rise in both Lisbon and Porto, reflecting the persistent shortage of high-quality space.
Tourism and living reinforce structural attractiveness
Hospitality recorded a very strong performance in 2025, supported by continued growth in tourism. Hotel revenues increased, reflecting improvements in revenue per available room (RevPAR) and high occupancy levels, while new supply was mainly concentrated in the 4 and 5-star segments, enhancing the quality of Portugal’s tourism product. The pipeline for the coming years remains robust, sustaining ongoing investor interest in the sector.
In the living segments, student housing continues to show a significant imbalance between supply and demand. Despite the delivery of new beds, Portugal remains well below the European average in terms of provision, supporting rental growth of close to 10% per year in Lisbon and Porto. Senior living is also following a growth trajectory, although supply remains insufficient and there is a lack of modern product—factors that continue to attract operators and private investors.
Outlook for 2026
The market enters 2026 with very solid fundamentals: strong occupancy, growth in prime rents and a pipeline that remains insufficient to meet demand. This imbalance will continue to support occupier and investor interest, particularly in high-quality assets and repositioning strategies.
Market Focus Portugal 2026 anticipates a positive year for the Portuguese real estate market, supported by a favourable macroeconomic environment, strong tourism performance and resilient occupier markets. The scarcity of high-quality, sustainable and well-located assets will continue to be both the sector’s main challenge and its key growth driver.
