Commercial real estate investment in Portugal reached 1.8 billion euros by September, a growth of more than 60% compared to the same period last year, driven by the demand for investment funds and real estate companies, which represented more than half of transactions, according to a study released on the 12th and verified by Lusa.
According to Savills’ Market Outlook Q3 2025 report, in the third quarter alone, investment in the country totaled 572 million euros, 50% more than in the same period of the previous year. In the year to September, the retail and hotel sectors together accounted for more than half of the investment, with year-on-year increases of 99% and 21%, respectively.
In retail, Savills highlights shopping centers as “the most dynamic asset class”, attracting more than 500 million euros of investment from institutional and private equity funds. In the case of hotels, investment reached 390 million euros, with demand concentrated “mainly in the Algarve and Greater Lisbon”, highlights Savills, placing the Algarve region at the center of investors’ attention in a segment that has been a driving force for commercial real estate.
The report also states that, since the beginning of the year, “the opening of 59 new hotels” were identified, which added more than 5,600 rooms to the national offer, signaling the dynamism of the sector and the reinforcement of installed capacity, in a context in which the Algarve continues to be one of the main tourist destinations in the country.
In offices, with stable occupancy levels and a shortage of supply in central locations, investment showed signs of recovery, reaching 235 million euros, around 13% of the total. The industrial and logistics segment surpassed, until September, the investment volumes of the last two years, raising an accumulated total of 148 million euros. With the average volume per transaction increasing 47% between January and September, Savills considers that “after a period of adjustment of expectations driven by rising interest rates, clear signs of market stabilization are beginning to emerge”.
For the head of Capital Markets at , Pedro Figueiras, the expectation is that 2025 will close as “the third, or even the second best year ever”.
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