The average deal size rose 5% to €32 million, reflecting larger-scale operations and greater capital concentration per asset, according to 2025 data from Savills’ Investment Department. In the fourth quarter, investment volume reached €902 million, marking a solid year-end performance.

Pedro Figueiras, Head of Capital Markets at Savills, highlights: “The Portuguese real estate market enters 2026 in a particularly favorable position, benefiting from stabilized interest rates, more controlled inflation, and the gradual recovery of European growth. This macroeconomic environment is unlocking investment decisions that had been on hold and is reinforcing appetite for core assets in prime locations.

After a 2025 marked by volume recovery and the return of large-scale deals, 2026 is shaping up to be a particularly promising year across all commercial real estate sectors.”

Retail leads, offices recover, and logistics expand
Retail accounted for 32% of total investment, with shopping centers recording a year-on-year growth of 26%.
Although office and logistics segments held smaller market shares, they were the fastest-growing compared to 2024, up 92% and 114%, respectively. The hotel sector maintained stable investment levels throughout the period.

More diversified capital and stronger domestic investment
Domestic capital represented around 35% of total investment, strengthening the role of local investors in the Portuguese market.
Among cross-border capital, Spanish investors led with 23% of total volume, followed by Canada, France, and the United Kingdom, which together accounted for about half of all international investment in Portugal.

Approximately 22% of total volume came from portfolio transactions, with large-scale deals marking the year. Lisbon and Porto concentrated 65% of activity, joined by deals in alternative segments such as gyms, schools, and data centers, which are gaining increasing visibility in the market.

Landmark transactions and yield trends
Among the year’s largest transactions were the sale of a 50% stake in NorteShopping, the acquisition of Livensa Living student residences, and the sale of the Cascais Miragem hotel — deals that underscore the attractiveness of the Portuguese market across different asset types.

Yields remained generally stable, with two exceptions: the office segment saw an increase of 25 basis points, settling at 5.00%, while high street retail experienced a 25-basis-point compression to 4.25%.

2026 expected to extend recovery trend
Looking ahead to 2026, the outlook remains positive, supported by the momentum seen in 2025 and by a steady growth trajectory across all market segments. Projections suggest continued activity levels and sustained liquidity in a context where Portugal stands out for its macroeconomic stability.