The Portuguese real estate market remains resilient, despite entering a phase of greater selectivity in the current international environment, with increasingly pronounced differences in the performance of various asset classes. Retail and hospitality stand out for their positive performance, while the residential sector continues to experience price pressures and the office market faces a slowdown in activity.
Capital continues to flow into the market. In the first half of 2026, investment in commercial real estate exceeded €1.41 billion, up 14% year-on-year. Significant transactions in the retail and hospitality sectors helped maintain the attractiveness of the Portuguese market. Notable deals included Sonae Sierra’s acquisition of Gaia Shopping and Arrábida Shopping for €180 million, followed by the sale of a 72% stake in Corinthia Lisbon to Orion Capital Managers for approximately €150 million.
Prime yields remained stable across most asset classes, while retail recorded yield compression of between 15 and 25 basis points, reflecting the sector’s greater resilience during the first half of the year.
Offices
Sustained rental growth in a market characterised by a shortage of available space, combined with market volatility and risk arising from tensions in Eastern Europe and the Middle East, has contributed to delays in deal-making decisions. These factors have led to a slowdown in the Lisbon office market, which recorded a 20% decline in occupational activity in the first half of 2026, with 66,900 sq m of take-up. Office take-up for 2026 is currently forecast to reach approximately 150,000 sq m.
Despite the slowdown in activity, prime rents increased across all zones except the Emerging Zones (Zone 3), with year-on-year growth ranging from 2% to 20%. Prime rents in the Prime CBD (Zone 1) currently stand at €33.00/sq m/month. These elevated prime rental levels are expected to remain sustainable, supported by increasingly stringent standards for high-quality buildings and sustainability and wellbeing performance certifications.
Retail
Retail is one of the most resilient segments of the market. Sales increased by 3% year-on-year, while online sales grew by 6% in the first half of the year. This performance was also reflected in prime yields, which compressed by between 15 and 25 basis points.
Prime rents have already surpassed pre-pandemic levels, reaching €145/sq m/month for high-street retail in Lisbon, €115/sq m/month in shopping centres and €13.50/sq m/month in retail parks.
Capital continues to return to traditional assets, such as shopping centres and high-street retail, as well as alternative formats capable of combining experience, convenience and omnichannel retailing. This reinforces the importance of spaces that can adapt to the evolving preferences of consumers and investors.
Industrial and Logistics (I&L)
The industrial and logistics sector recorded take-up of more than 199,200 sq m up to June 2026, just 1% below the corresponding period in 2025, maintaining a stable performance despite an international environment marked by the reconfiguration of global trade, rising raw material and energy costs, and supply chain disruptions.
Prime rents continued to follow a positive trend, standing at €5.65/sq m/month along the prime Castanheira–Azambuja corridor and €7.00/sq m/month in Lisbon, highlighting the growing importance of proximity to the end consumer.
In the current environment, supply chain resilience, nearshoring, supplier diversification and the need to maintain higher inventory levels are expected to continue supporting demand for modern, strategically located logistics facilities.
Hospitality
The hospitality sector continues to benefit from resilient tourism demand. In the first half of 2026, overnight stays in tourist accommodation reached 36.8 million, up 1% year-on-year. Room occupancy remained broadly in line with the previous year, averaging 54.0% during the first six months of 2026.
Revenue per available room (RevPAR) reached €62.80, while the average daily rate (ADR) stood at €116.20, representing increases of 3% and 7%, respectively, over the period under review.
Despite the international environment, hospitality is expected to remain one of the most attractive asset classes in Portugal in 2026, supported by resilient tourism demand and the consolidation of a higher-quality offering.
Residential
Across the residential markets of the Lisbon and Porto Metropolitan Areas, demand continues to outstrip supply. In Lisbon, 3,890 apartments were sold in the first half of the year, at an average price of €5,850/sq m, up 16% year-on-year. In Porto, 2,310 apartments were transacted at an average price of €4,180/sq m, representing an increase of 13%.
The residential sales market remains resilient, supported by structural demand that continues to exceed supply, sustaining the positive trend in prices. Addressing the housing shortage will require a structural response through the industrialisation of construction, particularly modular construction, which is expected to play a significant role in transforming the sector over the coming years.
Pedro Rutkowski, CEO of WORX Real Estate Consultants, comments:
“The international geopolitical and economic environment is proving challenging. Portugal is not immune, but it is resilient. Given its scale, the Portuguese real estate market continues to demonstrate resilience, with differentiation between assets becoming increasingly decisive and significant growth potential across several sectors. This evolution requires a deeper understanding of each segment, enabling us to identify the best opportunities and anticipate the trends that will shape the market.”
He adds:
“Investment in infrastructure, such as high-speed rail, will accelerate the development of more remote areas, bringing them closer to major cities and generating momentum that will extend to the real estate sector. Combined with the potential of modular construction to accelerate this process, we should witness the greatest transformation of Portugal’s real estate landscape in decades.”
The WMarket Review Mid-year 2026 provides a comprehensive analysis of the main segments of the Portuguese market — offices, retail, industrial and logistics, hospitality and residential — identifying the key trends, opportunities and challenges shaping the sector.
Study available at: https://worx.pt/en/report/portuguese-real-estate-market-wmarket-mid-year-2026/
Article published on 31 August 2026.