Investment in commercial real estate in Portugal climbs 14% to €1.4Bn in 1H, 2026

Commercial real estate investment in Portugal closed the first half of 2026 with approximately €1.40Bn in transactions—a 14% increase compared to the same period the previous year—according to the Savills Portugal Capital Markets H1 2026 report.

This figure was driven primarily by the first quarter, which totalled €914 million—up 39% from the same period in 2025.

The second quarter saw €491 million in transactions, a figure closer to the average recorded for this period in recent years.

This dynamic is also reflected in the number of deals. Approximately 55 transactions were concluded—a 25% increase over 2025—with an average deal size of €27 million, down from the €34.2 million recorded in the first half of that year.

The signal is clear: the market has become more granular, featuring a broader investor base and less reliance on a small number of large-scale transactions.

Hospitality leads as market gains sectoral diversity

The hospitality sector led the half-year, with €508 million invested—representing 36% of the total volume and a 54% increase compared to the same period in 2025—driven by tourism demand.

Retail followed with €464 million and a 33% share, marking a 25% decline compared to a strong first half of 2025.

The industrial and logistics sector totalled €164 million—12% of the half-year’s investment and a 48% increase year-on-year—boosted by portfolio transactions.

Meanwhile, the office sector totalled €68 million, accounting for 5% of transaction volume and a 49% drop. This result primarily reflects a scarcity of prime product available on the market rather than a decline in occupier demand.

The half-year was also marked by the diversification of asset classes. Data centers are gaining prominence as a distinct asset class, with €120 million invested, anchored by the sale of the Covilhã campus. (Pictured)

The “living” segment—expanded this year to include senior housing—reached €71 million (5% of the total), a 79% increase compared to the same period last year. These are two signs of a market broadening the range of assets available for investment.

Alexandra Gomes, Head of Research at Savills Portugal, says: “The 14% growth in commercial investment during the first half of 2026 confirms that the Portuguese market continues to attract capital, even amidst a more demanding financial environment.

The combination of an exceptional first quarter, sectoral diversification, and an expanding investor base demonstrates that the market is evolving structurally, becoming more resilient to cycles of volatility.”

Investor Profile and Prime Yields

In terms of capital, institutional investors and private equity funds together accounted for 63% of the invested amount (46% and 17%, respectively).

By geographic origin, Portugal was the largest single source of capital, representing 38.1% of the volume; however, the market remains heavily reliant on international investment, with 61% of the total originating from abroad—notably from France, the UK, the US, Spain, and Switzerland.

Prime yields remained stable across most sectors, currently standing at 5.00% for offices, 6.25% for shopping centers, 4.25% for high-street retail, 6.00% for retail parks, 5.50% for logistics, and 5.50% for hotels.

Pedro Figueiras, Director and Head of Lisbon, concludes: “Savills expects activity to continue through the second half of the year.

The volume recorded up to June already represents about half of the 2025 total, and historically, the second half of the year tends to see greater momentum. Indeed, ongoing market transactions point to this trend—particularly in the hospitality and logistics sectors, where a very active second half is anticipated.

If this pattern holds, 2026 could rank among the most active years, in a market that attracts investors across the entire risk spectrum and various sectors, underpinned by solid fundamentals and establishing itself as a key destination for capital in Europe.”

Source: Savills Portugal