Total real estate investment in Portugal up 21% in 2025 says DILS Portugal
The total investment in commercial and residential investment in Portugal in 2025 stood at an estimated €2.8Bn – up 21% on 2024 according to DILS Real Estate Market Analysis 2025.
Overseas investment represented 60% of the total volume invested in the sector with the retail and hotel sectors standing out as the most attractive, representing 54% of the total value of the investment.
Core & Value Added Strategies corresponded to 73% of the annual investment volume.
For 2026, DILS Portugal highlights the several trends:
- Capital rich Portuguese real estate funds are likely to increase their investment share in the local market.
- Institutional capital will likely be more selective, directing investment to core quality assets, even when the market experiences lower yields.
- Investors will also continue to put their money in projects anchored on supermarkets and logistics, sustained by strong market fundamentals, with potential for additional compassion on yields.
The main transactions in 2025 in retail was Norte Shopping which sold to Sonae Sierra for €300 million.
In the Living segment, the 2,470 bed PBSA Portfolio/Livensa Living sold for €300 million to Nido Living.
In Hospitality, the Hotel Cascais Miragem was sold for €125 million to Ibervales and ARD Investment & Development.
In terms of yields, high-street retail stood at 4.50%, Lisbon Offices at 5%, Prime Shopping Centers at 6.25% and Lisbon Big Box (Self Storage and Warehousing) (5.75%) and Retail Parks (7%).
As for hotels, the statistics were buoyant with 2,934 new hotel rooms and 8,688 under construction.
Last year hotels in Portugal posted 82 million overnight stays, 33 million guests, and 5,5 million US tourists. (All up between 2-3%)
As for hotel room occupancy rates, Lisbon enjoyed 74%, Porto 68% and the Algarve 60%.
Source and Credits: DILS Portugal
