Retail takes the lead in commercial real estate transactions in 1Q

The first quarter of 2025 saw a robust start to Portugal’s commercial real estate market with the retail sector and shopping centres providing the main driver for investment.

Between January and March, the volume of investment in retail real estate assets rose to €356 million, representing 57% of the total invested in this period according to real estate consultants JLL.

This performance reflects an expressive growth in the sector’s activity, with deals that include the transaction of a prime shopping centre that represented around half of the total value invested in the first quarter of 2025, a portfolio of supermarkets in the centre and north of the country, a secondary retail park, and high street assets in strategic locations.

With a total commercial investment of €625 million, the Portuguese market presented an increase of more than than 2.5 times on 1Q, 2024.

This result exceeded the average first quarter results seen over the past three years by 160% and 28% for the average seen over the last five years. JLL did not state what exactly the retail assets were.

However, Castellana Properties acquired Forum Madeira in Funchal while Fundo Shoppings Iberia bought the shopping centres La Vie Caldas da Rainha and La Vie Guarda. Trajano Iberia, held by Louis Vuitton, also acquired Nosso Douro Shopping in Vila Real.

In 2025 Mercadona announced it would expand its presence in Portugal by opening 10 new stores to close the year with 70 supermarkets in 12 districts.

Apart from Mercadona, the food distribution companies Pingo Doce, Continente, Lidl and Aldi have also announced plans to open new stores.