Real estate investment in Portugal reached €1.23 billion in the first half of this year, reflecting a year-on-year increase of 78%, according to data from CBRE. In a statement, the consultancy said that “commercial real estate investment in Portugal continues to show clear signs of growth in 2025,” according to Lusa, cited by Executive Digest.

CBRE contextualizes this increase by pointing out that the first half of 2024 was still affected by the impact of rising interest rates, leading to more restrained investment levels. Despite the recovery throughout the year, the performance in the first six months remained below that of the second half, which helps explain the now-registered significant year-on-year variation.

On the other hand, “the first half of 2025 recorded a significant investment volume, driven by a series of high-value transactions in the retail and hospitality sectors — which have, for three years now, stood out as the main drivers of investment in Portugal,” CBRE highlighted in the same note.

It is worth recalling that, at the beginning of the year, the consultancy had anticipated that the real estate market in Portugal would maintain its growth trajectory, forecasting an increase in the number of transactions and an investment volume that could reach €2.5 billion, representing an 8% rise compared to 2024.

However, “based on the strong performance recorded in the first half and the projects currently on the market, we anticipate with high probability that the transacted volume in 2025 will exceed the initial projection, resulting in growth greater than initially estimated.”

“Portugal is, for the first time since this study began, in the top tier of European investment destinations.”

According to CBRE data, over the past decade, more than three-quarters of investment in Portugal has been “carried out by international investors.” After launching a series of surveys, there has been “a return of optimism in the European real estate investment markets, as more than 90% of European investors expect to maintain or increase their acquisition activity this year.”

“The first half of 2025 confirms the sustained attractiveness of the commercial real estate market in Portugal. Investors continue to focus on segments with solid fundamentals, such as retail and hospitality, and are benefiting from more favorable financing conditions. Greater domestic liquidity and Portugal’s European prominence further reinforce confidence in an even more dynamic second half,” stated Francisco Horta e Costa, Managing Director of CBRE Portugal, in a written statement sent to Lusa.