Strong Demand Continues to Outpace Supply Across Most Real Estate Segments in Greater Porto

• First edition of the Market Focus Porto Report by Cushman & Wakefield shows that commercial real estate investment reached €451 million in the first half of the year, a record high for the last ten years.

• Retail and hospitality were the sectors that attracted the largest share of invested capital.

Cushman & Wakefield (C&W) has just launched the first edition of the Market Focus Porto Report. Following a dynamic first half of the year, the report highlights the key trends shaping the Greater Porto commercial real estate market and expected to continue influencing its evolution throughout 2026 and into early 2027. The analysis covers the office, retail, industrial and logistics, hospitality, and investment sectors.

"Porto continues to establish itself as one of Portugal’s most dynamic and attractive real estate markets, supported by a diversified economy, strong business activity, and growing international recognition. Backed by economic growth, rising household income, and declining unemployment, the market maintains robust momentum across the office, retail, logistics, hospitality, and investment sectors, demonstrating its resilience, maturity, and ability to attract companies, visitors, and capital," says Ana Gomes, Partner and Head of Research & Insight at C&W.

Office and Retail Markets Show Strong Growth Momentum

Porto’s office market continues on a growth trajectory, with take-up increasing by 37% through August, reflecting corporate confidence and ongoing expansion plans. At the same time, more than 90,000 sq m of new office space is under development, representing one of the largest waves of modern and sustainable office stock ever recorded in the city. Demand remains concentrated in high-quality buildings with prime locations and strong sustainability credentials, confirming the market’s growing maturity and sophistication.

The retail market also continues to demonstrate strong growth dynamics, with the number of new store openings rising by 50% in the first half of the year, reflecting the confidence of both national and international brands in the region. The shortage of available space in the city's main retail streets continues to drive demand for prime locations and put upward pressure on rents. Meanwhile, Porto is evolving into an increasingly diverse and sophisticated retail destination, extending its appeal beyond the traditional centrality of Rua de Santa Catarina.

Industry and Hospitality Continue to Drive Demand

Greater Porto continues to consolidate its position as one of Portugal’s leading logistics markets, benefiting from a strategic location and a strong industrial base that continue to fuel demand. Despite robust activity levels, the shortage of modern, high-quality space remains the market’s main challenge, limiting the fulfilment of part of the existing demand. At the same time, rents continue to rise and emerging locations such as Valongo, Trofa, Santo Tirso, and Santa Maria da Feira are gaining relevance, attracting increasing numbers of companies and investors.

Hospitality also remains one of the key drivers of Porto’s economic and real estate dynamism, supported by tourism growth and increasing visitor arrivals. Despite the addition of new supply, the market continues to perform close to historic highs, demonstrating a remarkable capacity to absorb new developments. At the same time, the destination is strengthening its international positioning and raising the quality standards of its hospitality offering, with an increasingly significant presence of four- and five-star hotels.

Record Investment Volume

Commercial real estate investment in Greater Porto maintained a positive trajectory during the first half of 2026, reaching €451 million, an 8% increase year-on-year and the highest investment volume recorded in the last decade. Retail and hospitality accounted for the majority of invested capital, highlighting investors’ confidence in the region’s economic and real estate fundamentals. Despite the limited availability of assets for acquisition, investor interest remains strong, supporting market values and reinforcing Porto’s attractiveness as a real estate investment destination.

"Strong demand from occupiers, retailers, logistics operators, hotel groups, and investors continues to exceed the available supply across much of the region’s real estate market. This shortage of high-quality product is currently one of the market’s main challenges, but also a reflection of the strength of its fundamentals," concludes Mário Jacob, Head of Porto at C&W.

Looking ahead over the next 6 to 12 months, a new generation of office buildings is expected to come to market. With more than 90,000 sq m currently under construction, Porto is preparing to welcome one of the largest portfolios of sustainable, high-quality office space in its history, significantly raising market standards and broadening the range of options available to occupiers.