Investment in commercial real estates posts €915 million in 1Q – up 41%

Investment in commercial real estate in Portugal, meaning offices, warehouses, logistics parks, hotels, retail units and shopping centres, among others, pulled in €915 million in the first quarter of 2026 – an increase of 41% on the same period 2025.

This is according to real estate consultants WORX which published its WOutlook Q1 2026, its report on the commercial real estate investment market in Portugal.

The hospitality and retail sectors attracted the most capital, accounting for 39% and 37% of the total investment volume, respectively.

The Arrábida and Gaia shopping centers, acquired for €180 million, and the sale of the Penha Longa Resort to L Catterton & Cedar Capital Partners, for a value between €120 and €140 million, were the largest transactions of the year.

The sector’s benchmark yield rates, known as ‘prime yields’, experienced a “slight compression” at the start of the year, of 15 to 25 basis points, but this was only in the retail segments, in light of the sector’s dynamism.

In the remaining sectors, prime yields remained stable at 5.00% in offices, 5.75% in the industrial and logistics sector, and 5.50% in the hospitality sector.

In a context where the global economy is going through a period of high uncertainty, the Bank of Portugal’s projections indicate that the energy shocks resulting from the Middle East conflict, with a direct effect on inflation, will dissipate in the short term, leading inflation to converge to 2.0% by 2028 after reaching 2.8% this year.

Pedro Rutkowski, CEO of WORX Real Estate Consultants, emphasises: “The Portuguese real estate market has been demonstrating its maturity and resilience, and this first quarter is no exception.

The results obtained attest to Portugal’s consolidation as a benchmark destination for real estate investment, supported by the robustness of its economic fundamentals, growing international recognition, and the increasing sophistication of the national product.”

He further adds that: “In the immediate future, the effects of external shocks are not directly reflected in investor appetite and yields, which are typically delayed in Portugal compared to other markets.”

The full report is available here: WOutlook-CRE-Investment-Market-Q1-2026

Source: Worx; Credits: Penha Longa Resort