Iberian peninsula among most attractive regions for retail investment
The Iberian Peninsula is consolidating its position as one of the most attractive regions in Europe for retail investment, according to JLL data. Portugal and Spain together registered €1,384 million in transactions in the first three months of 2026, surpassing markets such as the United Kingdom and Germany and positioning itself as the leading European region in attracting capital to the sector.
Portugal contributed €340 million in retail investment in the first quarter of the year, confirming the solidity and stability of the national market.
This performance reflects the growing interest of international investors in the Iberian Peninsula, supported by factors such as above-average European economic growth, strong tourism dynamics, and the geopolitical stability of the region.
Augusto Arrochella Lobo, Head of Commercial Capital Markets at JLL Portugal, states: “The Iberian Peninsula is one of the most attractive markets for retail investment in Europe.
Institutional capital, investment managers, and private assets are watching the sector very closely
Both markets have the critical mass, stability, and fundamentals necessary to lead capital raising in Europe. The Portuguese market is also moving towards greater integration, and more and more investors and managers are creating asset platforms.”
Prime assets and the food segment drive retail in Portugal
Investment in retail gained strong momentum, driven by a significant portfolio of shopping centers and retail parks — including GaiaShopping, ArrábidaShopping, and Matosinhos Retail Park — consolidating the sector’s dynamism thanks to solid macroeconomic fundamentals and high occupancy levels.
The retail sector in Portugal started 2026 with very positive dynamics, supported by the growth in private consumption. According to data from INE (National Institute of Statistics), retail sales, excluding fuels, grew 4.4% year-on-year up to March 2026, driven by both non-food products (+5.1%) and food products (+3.6%).
The dynamism observed at the end of 2025 continued into the first quarter of 2026, with street retail hubs in Lisbon and Porto registering high levels of demand. In Lisbon, activity continues to be strongly driven by tourism and the restaurant sector, while Porto reinforces its attractiveness to international brands.
Strong demand from operators has contributed to maintaining prime rents at historical highs. In the first quarter of 2026, Chiado recorded prime rents of €155/m²/month and Rua de Santa Catarina, in Porto, reached €90/m²/month.
Supermarkets also showed a growth trend in rents, reaching €16/m²/month for standalone assets, reflecting the growing interest of investors in proximity and convenience formats.
The outlook for the Portuguese retail market remains positive throughout 2026, supported by continued demand for quality assets, the evolution of experiential retail, and the growing integration between physical and digital channels. Shopping centers and malls are expected to continue to concentrate a large part of investment activity, while the food and supermarket segment gains relevance among investors and operators.
Investment activity is expected to continue to be led by fund managers and private investors, although a progressive increase in interest from institutional investors is also observed, reinforcing the dynamism of the Portuguese retail market over the coming months.
Source: JLL/ArrabidaShopping
