Stability attracts capital with real estate investment expected to reach €2.4Bn in 2026

Portugal’s real estate market should attract €2.5Bn of investment in 2026 after closing 2025 with €2.7Bn and stable yields according to consultant CBRE’s Portugal Real Estate Outlook 2026.

Lisbon is expected to enjoy an office take-up of around 200,000m2 while prime rents are set to hit €32/m2 in the capital’s historic centre and riverside area, exceeding the traditional Central Business District (CBD).

The report reveals that after a year of significant recovery, Portugal’s real estate market is entering a maturity and consolidation phase, sustained by stable macroeconomic fundamentals and a risk-return profile that places Portugal as one of the most defensive markets in Europe.

The commercial investment market totalled €2.7Bn in 2025, an increase of 17% year-on-year. For 2026, CBRE estimates a volume of €2.4Bn, a figure that, although slightly lower, reflects the normalisation of activity, in a context of stable yields in most sectors, in contrast to the volatility of other economies.

The capital structure also shows a relevant evolution, insofar as although foreign investment remains dominant, with about 60% of the volume, domestic investors have gained a significant market share, associated with the transfer of savings from term deposits to real estate investment funds.

José Maria Moutinho, Head of Research at CBRE Portugal, underlines the country’s competitive position, stating that “Portugal currently has particularly competitive return premiums.

While other European economies are facing debt challenges, we are following a path of fiscal consolidation, macroeconomic stability and attractive real estate returns, reinforcing Portugal’s position as an attractive market.”

Igor Borrego, Head of Capital Markets at CBRE Portugal, points out that “we do not anticipate significant compressions in yields in 2026, so there is still a good window of opportunity to invest.”