Commercial Real Estate Investment in Portugal

Published on May 2, 2026 and written by Cyril Jarnias

Portugal is establishing itself as a top destination for real estate investors, particularly in the commercial sector. With a growing economy and a dynamic real estate market, the country offers numerous opportunities for savvy investors. Let’s dive into the details of this promising market and discover the prospects it offers for 2025 and beyond.

A Diverse Range of Commercial Properties

The commercial real estate market in Portugal offers a wide variety of options for investors. From modern shopping centers to offices and logistics warehouses, the country provides a broad selection of properties suited to different needs and investment strategies.

Shopping Centers: Sought-After Assets

Portuguese shopping centers are experiencing renewed interest from investors. In 2024, this segment attracted significant investments, particularly from international players. For example, the South African company Lighthouse acquired several major shopping centers, including Espai Gironés in Salt (Girona), H2O in Rivas Vaciamadrid (Madrid), and Salera in Castellón. This trend highlights the growing appeal of the Portuguese market for foreign investors.

Retail Parks: A Safe Bet

Medium-sized retail parks are also a strong segment. In 2024, this type of asset attracted investments of around 450 million euros. These spaces, often located on the outskirts of major cities, offer interesting opportunities for retail park brands and large-scale retail businesses.

Office Real Estate: A Sector in Transition

The office market in Portugal is undergoing a major transformation, influenced by new post-pandemic work trends. Coworking spaces and flexible offices are gaining popularity, especially in major cities like Lisbon and Porto. This evolution offers opportunities for investors who can adapt their offerings to the new expectations of businesses.

Attractive Profitability and Risk Management: A Winning Duo

Commercial real estate in Portugal stands out for its attractive yields, while presenting a relatively moderate risk profile for savvy investors.

Tempting Yields

In 2024, the prime shopping center segment posted a yield of 6.25%, while medium-sized retail parks offered a yield of 6.05%. These figures are particularly attractive in the current economic climate, where investors are seeking stable returns.

Expected Yield Compression

Forecasts for 2025 indicate a possible compression of yields, particularly for “core+” assets. This trend could benefit investors entering the market now, potentially gaining from an appreciation in the value of their assets over the medium term.

Risk Management: The Importance of Diversification

As with any real estate investment, diversification remains a key element of risk management. Savvy investors spread their investments across different types of commercial assets and different regions of Portugal to optimize their risk-return profile.

The Appeal of Secondary Cities

While Lisbon and Porto remain the flagship markets, secondary cities like Braga, Coimbra, or Faro offer interesting opportunities, often with more affordable entry prices and potentially higher yields.

Trends Shaping the Future of the Sector

The commercial real estate market in Portugal is influenced by several major trends that should continue to shape it in the coming years.

Sustainability at the Core of Concerns

The green transformation of Portuguese cities is underway. In Lisbon and Porto especially, urban planning initiatives emphasize sustainability. More and more projects incorporate energy-efficient designs, solar panels, and green roofs. This trend aligns with Portugal’s commitment to achieving carbon neutrality by 2050, in line with European Union goals.

For investors, this means growing demand for commercial properties certified for energy efficiency. “Green” buildings are no longer just an ethical choice but are becoming an economic imperative, attracting tenants concerned about their image and environmental impact.

The Rise of Retail

Despite the challenges posed by online commerce, the physical retail sector shows signs of resilience and growth in Portugal. In 2024, investments in this segment reached 2.645 billion euros, an impressive increase of 147% compared to the previous year.

• The strong performance of the Portuguese economy
• Sustained activity from commercial operators
• The correction of commercial asset valuations from previous years
• High profitability for a limited level of risk

Growing Appeal for International Investors

The Portuguese market is attracting more and more international investors. French real estate investment trusts (SIICs), for example, are showing growing interest in medium-sized retail parks in Portugal. This internationalization of the market brings not only capital but also new practices and standards that contribute to the professionalization of the sector.

Expansion of Commercial Stock

Forecasts indicate a continuous increase in commercial space in Portugal. Once planned developments are completed, the stock of commercial facilities is expected to total 630 assets, exceeding 17.5 million square meters of leasable space. This expansion is particularly notable in regions like Andalusia, Madrid, Galicia, and Catalonia.

Technology Serving Commercial Real Estate

The integration of advanced technologies in commercial properties is becoming increasingly common. From smart building management systems to augmented reality solutions to enhance the customer experience in shopping centers, technology plays a growing role in the valuation of commercial assets.

Conclusion: A Promising Market for 2025 and Beyond

Commercial real estate in Portugal presents an encouraging picture for investors in 2025. With a resilient economy, attractive yields, and a market in full evolution, the country offers numerous opportunities for those who know how to seize them.

Trends toward sustainability, technology, and market internationalization create a dynamic environment where innovation and adaptation are rewarded. Whether in modernized shopping centers, flexible offices, or booming retail parks, investors have a wealth of choices to diversify their portfolios.

However, as with any investment, thorough due diligence and a nuanced understanding of the local market remain essential. Potential investors must consider not only current yields but also long-term prospects and potential regulatory changes.

Ultimately, Portugal positions itself as a top destination for commercial real estate in Europe, offering an attractive balance of yield, stability, and growth potential. For investors ready to explore this dynamic market, 2025 could well be the year of opportunities in Portuguese commercial real estate.