Retail Leads Investment
Retail led capital allocation, concentrating 30% of the invested volume, followed by offices (25%) and hospitality (20%), highlighting the sectoral diversity of real estate investment in Brazil.

International capital maintained a dominant role, representing 61% of the total invested, with a clear predominance of European investors, responsible for 88% of this amount.

For Paulo Sarmento, Head of Portugal at Cushman & Wakefield, the numbers confirm the sector's resilience.

“The 2025 performance confirms that the Portuguese real estate market is in a clearly positive cycle. The combination of liquidity, investor confidence, solid occupancy fundamentals and better financing conditions has created a very favorable context for investment.”

Supply Shortage Conditions Offices
In the office market, Lisbon registered a slight reduction in absorption compared to the previous year, mainly explained by the scarcity of high-quality spaces.

Despite this, vacancy rates remained at very low levels, while prime rents continued to grow, reaching a new record in the capital's CBD prime zone.

In Porto, activity was more moderate, although the report anticipates signs of recovery in 2026, as new, higher-quality projects are completed and made available on the market.

Resilient retail, logistics remain limited
The retail segment once again demonstrated strong resilience. In prime street retail locations in Lisbon and Porto, the availability of space remained extremely low, contributing to rising rents.

Shopping malls continued to show robust levels of sales and foot traffic, while retail parks reinforced their position as one of the most dynamic formats in the market, concentrating most of the new supply currently under development.

In the industrial and logistics sector, absorption fell compared to the peak observed in 2024, but demand continued to exceed available supply, especially for modern, efficient assets aligned with ESG criteria.

This shortage of high-quality product maintained pressure on prime rents, which continued to grow in both Lisbon and Porto.

Student and senior residences gain importance.
The hotel industry maintained a very positive performance in 2025, supported by the continued growth of tourism in Portugal.

Sector revenues increased, reflecting improved RevPAR (revenue per available room) and high occupancy levels. At the same time, new supply focused mainly on the four- and five-star segments, contributing to the qualification of the national tourism offer.

The pipeline of new projects remains robust, sustaining the continued interest of investors in this segment.

In the living segments, student residences continue to show a strong imbalance between supply and demand. Despite the entry of new beds into the market, Portugal maintains ratios significantly below the European average, which has sustained significant rent increases, especially in Lisbon and Porto.

Senior living is also following a growth trajectory, although with a still limited supply and a clear lack of modern product, factors that continue to attract operators and private investors.

2026: Strong demand and scarce assets
For 2026, Cushman & Wakefield anticipates a globally positive year for the Portuguese real estate market, supported by a favorable macroeconomic environment, the dynamism of tourism and solid occupational fundamentals.

The consultancy highlights, however, that the scarcity of well-located, sustainable and high-quality assets should continue to be simultaneously one of the sector's main challenges and one of its biggest growth drivers.

“The sector enters 2026 with very solid fundamentals: strong occupancy, growth in prime rents, and a pipeline that is still insufficient to meet demand. This imbalance will continue to sustain the interest of occupiers and investors, mainly for high-quality assets and repositioning strategies,” concludes Paulo Sarmento.