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Project to total 5MW in the Porto Alegre Metropolitan Region
Europe Commercial Property Update

The article examines existing home price changes across 19 of Europe's largest countries through Q1 2026 based on Eurostat transaction-based data, showing divergent regional trends with Portugal, Bulgaria, Slovakia, Hungary, and Spain leading in year-over-year gains of 13.5 to 19.7 percent, while Germany, France, Italy, Sweden, Austria, and Finland remain below previous peaks. Finland experienced the steepest decline at 16.8 percent from its Q2 2022 peak and has returned to 2010 price levels, whereas Hungary posted the largest cumulative gain since 2010 at 308 percent, followed by Portugal at 186 percent and Czechia at 171 percent.

Capital Economics analysis of Q1 RICS survey sentiment across European commercial property markets, highlighting weakness in France and Germany alongside regional performance in Spain, Portugal, and Poland.
Analysis of Portugal's hospitality market maturation, international operator expansion, institutional investment trends, and development pipeline through 2026.

This is a quarterly data report published by CBRE on March 31, 2026, presenting office market figures for Lisbon, Portugal in the first quarter of 2026.

Portugal's real estate investment market closed 2025 with total investment reaching 2.7 billion euros, an 11 percent increase compared with 2024, with logistics emerging as the strongest performer at 114 percent growth year-on-year. Economic fundamentals remain solid, with GDP growth projected at 2.3 percent for 2026 and unemployment at 5.9 percent, supported by strong labour market conditions and EU Recovery and Resilience Facility funding.

This Savills report examines Portugal's flexible workspace market, particularly in Lisbon and Porto, analyzing how post-pandemic hybrid work models have driven demand for coworking hubs, innovation spaces, and serviced offices beyond traditional corporate offices. The document presents the flexible workspace sector as steady-growing in Portugal, driven by startups, remote work culture, and international companies, while positioning Portugal as an attractive hub for flexible work due to its quality of life, cost efficiency, talent, and digital infrastructure.

This is a market report published by Colliers in September 2025 providing a snapshot of the logistics sector in Portugal, with focus on the Lisbon region.

This is the 45th edition of Cushman & Wakefield's MarketBeat Portugal report, covering economic forecasts and commercial real estate sector analysis for autumn 2025. The document presents Moody's Analytics forecasts indicating moderate Portuguese economic growth of 1.7% GDP in 2025, with private consumption rising 2.9%, investment growing 5.3%, inflation at 2.4%, and unemployment declining to 6.1%, while longer-term projections (2026–2027) show continued gradual acceleration with GDP growth of 2.0–2.1% and unemployment falling to 5.2% by 2027.

This is a market report published by Colliers in June 2025 providing a snapshot of office sector conditions in Lisbon and Porto, Portugal.

Portugal's industrial and logistics market recorded 206,530 square meters of year-to-date take-up through Q2 2025, with 129,405 square meters leased in the second quarter across 17 new occupancy deals, while prime rents reached €5.50 per square meter per month in Greater Lisbon and €5.75 in Greater Porto. According to Moody's Analytics, Portuguese GDP growth is forecast at 1.7% for 2025 followed by 2.6% in 2026, with four projects totaling 96,600 square meters completed in Q2 2025 and a pipeline of 498,250 square meters planned over the next three years, with Greater Lisbon's vacancy rate at 4.2%.

The document reports on Portugal's retail market in Q2 2025, covering economic fundamentals including 1.7% GDP growth forecasted for 2025, unemployment at 6.3%, and retail sales growth of 5.7%, alongside demand evolution showing 390 retail deals in H1 2025 and prime rent variations across formats and locations. Supply data indicate two retail schemes were completed in Q2 2025 totaling 33,000 square meters, with a pipeline of 171,190 square meters across Portugal, while prime rents in Lisbon's Chiado high street reached €140.0 per square meter per month and remained stable in shopping centres and retail parks.

The Cushman & Wakefield Lisbon Office MarketBeat Q2 2025 report covers the Greater Lisbon office market, documenting take-up of 83,840 square meters in the first semester of 2025 (a 34 percent year-on-year decline), with the vacancy rate at 7.4 percent and prime rent stable at €29.00 per square meter per month in the Prime Central Business District. The report projects Portuguese GDP growth of 1.7 percent in 2025 followed by acceleration to 2.6 percent in 2026, and highlights that the largest transaction of Q2 2025 was Banco de Portugal's acquisition of a 32,000 square meter building at Entrecampos for future headquarters.

Portuguese commercial real estate investment reached €1,257 million in the first half of 2025, representing 70% growth year-on-year, with retail accounting for 47% of total volume invested. The economy is forecast to grow 1.7% in 2025 followed by 2.6% in 2026, while prime yields stand at 5.00% for offices, 4.00% for high street retail, 5.50% for logistics, and 6.75% for retail parks as of Q2 2025.

Portugal's commercial real estate investment market recorded €1.23 billion in total volume during the first half of 2025, representing a 69% increase compared to H1 2024, with retail emerging as the leading sector at €616 million followed by hospitality at €330 million. Cross-border capital dominated activity at 76% of Q2 2025 investment volume, with investors from Spain, France, and the United Kingdom remaining active, while capital from Germany and the United States has been absent from recent transactions due to broader macroeconomic pressures.

This document analyzes Lisbon's residential market in Q1 2025 within the broader context of international and Portuguese economic conditions. It presents forecasts showing Portugal's GDP growth at 2.4% in 2025 and 1.9% in 2026, while noting eurozone GDP growth projected at 0.8% in 2025 and 1.0% in 2026, with ECB interest rates expected to fall to 1.75% by end of 2025, alongside Portugal-specific market data including construction cost increases of 3.1% year-on-year in February 2025 and housing loans granted of €1,991 million in January 2025 at a fixed interest rate of 3.60%.
The Marketbeat Portugal Retail Q1 2026 report analyzes Portugal's retail market, covering demand trends, rental rates, and development activity across retail formats including shopping centers and retail parks. Key findings include Portugal's GDP growth of 2.3% outperforming the Euro Area, 68 new shop openings in Q1 2026 (a 13% increase year-on-year), a 209,300 square meter retail development pipeline over three years with 96% dedicated to retail parks, and stable prime rents across all formats with expected upward adjustments in the near term.
The Cushman & Wakefield High Street Retail Report 2025 analyzes retail market performance in Lisbon and Porto, finding that 2024 marked a growth period for high street retail in both cities, with Lisbon's store count increasing 12% since 2019 and luxury and premium segments showing particular dynamism. The report identifies supply constraints as a limiting factor despite rising demand, with rents reaching record levels—Lisbon's Chiado and Avenida da Liberdade saw increases of €10/m²/month in 2024, while Porto's Rua de Santa Catarina and Avenida dos Aliados experienced increases of €5/m²/month and €2.5/m²/month respectively.
The Greater Porto office market recorded 7,150 square meters of leasing activity across 17 deals in Q1 2026, representing a 67% year-on-year increase, with the TMT & Utilities sector driving 73% of demand and Zone 3 (ZEP) capturing over 60% of take-up. The overall vacancy rate tightened marginally to 8.7%, prime rents remained stable across submarkets ranging from €17.00 to €21.00 per square meter per month, and an estimated 116,800 square meters of new office supply is forecast over the next three years with approximately 91,500 square meters already under construction.
The Marketbeat Portugal Industrial Q1 2026 report for Greater Porto covers demand, vacancy, rents, and development trends in Portugal's industrial and logistics sector, reporting 13 new occupancy deals totaling 65,110 square meters (a 16% year-on-year decrease), vacancy in Greater Lisbon at 4.3%, and prime rents rising to €6.00 per square meter per month in the Port of Leixões–Airport area. The report notes Portugal's GDP growth of 2.3% in Q1 2026, a substantial pipeline of 762,600 square meters scheduled for completion over the next three years with 394,000 square meters already under construction, and sustained occupier demand despite supply constraints.

Porto's office market recorded 6,140 square meters of take-up in Q1 2026, representing a 43% year-on-year increase, though activity remained below the three-year quarterly average, with the largest transaction being a 2,230 square meter letting to an IT company. The underlying market condition is characterized by a shortage of modern, high-quality office space constraining occupier options, though several projects in development are expected to gradually ease this supply constraint.

Lisbon's office market in Q1 2026 recorded 28,910 square meters of take-up, representing an 80% year-on-year increase driven by ten deals exceeding 1,000 square meters. Prime CBD office rents reached €32.00 per square meter per month, reflecting continued flight-to-quality dynamics, while occupier confidence in best-in-class assets remained strong despite macroeconomic headwinds.

Portugal's industrial logistics market recorded a take-up of 65,100 square meters in Q1 2026, with the Lisbon region representing 37% of activity, as geopolitical conflicts dampened market sentiment. Prime rents in Lisbon reached €7.00 per square meter per month in leading assets due to persistent supply shortages, while near-shoring and supply chain resilience strategies are expected to sustain demand for modern logistics space.

Lisbon's office market is undergoing a transformation driven by occupier demand for high-specification, sustainable buildings, yet only 15-20% of the city's total office stock currently meets Grade A standards, creating a significant supply-demand mismatch. European Grade A office development completions are expected to rise to 4.3 million square meters in 2025 but fall sharply to 3.1 million square meters in 2026, the lowest level since 2017, while speculative development has halved to just 1.6% of stock, with most new schemes pre-let prior to completion, intensifying competition for prime space and putting upward pressure on rents.

Cushman & Wakefield's 2025 High Street Retail Report analyzes the high street retail markets of Lisbon and Porto, examining supply, demand, luxury and premium segments, and prime rental levels across both Portuguese cities. The report finds that 2024 marked growth in high street retail driven by increased demand from national and international brands seeking avant-garde, technological, and sustainable concepts, though limited retail space supply constrained expansion, particularly in prime luxury locations such as Avenida da Liberdade in Lisbon and Avenida dos Aliados in Porto, with the food and beverage sector being the most prominent among new occupancies.

Lisbon's residential market has shifted from primarily investment-driven demand to lifestyle-focused appeal, with prime prices rising 2.7% in 2025 and forecast to increase another 4.5% in 2026, supported by tight supply of around 2,000 new homes delivered annually, €3.9 billion in foreign direct investment in 2025, and broadening buyer diversity from the US, France, Brazil, and China. Secondary segments including Comporta and Cascais are gaining prominence as international buyers prioritize long-term positions, rental income potential, and infrastructure development, while policy tightening around the Golden Visa and NHR schemes has not deterred demand sustained by visa channels including D2 and D7 permits, with over 386,000 residence permits issued by October 2025.

Cushman & Wakefield's Industrial Q4 2025 report on Portugal documents full-year 2025 take-up of 484,970 square meters in the industrial and logistics sector, representing a 39% year-on-year decrease, with Greater Lisbon commanding 56% of activity and prime rents increasing to €5.65 per square meter per month in Greater Lisbon and €5.90 in Greater Porto. The report projects Portuguese GDP growth to accelerate to 2.3% in 2026 from 1.9% in 2025, notes a 4.1% vacancy rate in Greater Lisbon evidencing supply constraints, and identifies 758,500 square meters of logistics projects planned over the next three years with 449,900 square meters already under construction.

The Cushman & Wakefield report covers the Greater Porto office market in Q4 2025, showing a 43% year-on-year drop in annual take-up to 43,700 sq.m, a vacancy rate of 8.8%, and stable prime rents at €21.00 per sq.m per month in the CBD Boavista submarket. Portuguese GDP grew 1.9% in 2025 with acceleration to 2.3% forecast for 2026, while the market pipeline contains 98,580 sq.m under construction with 32% pre-occupied and 119,880 sq.m projected completions within three years.

By end of Q3 2025, Portugal's industrial and logistics investment reached €148 million year-to-date, surpassing 2024 and 2023 volumes and representing 8% of total commercial real estate investment, though an imbalance persists between strong occupier demand and slower investment activity due to a critical shortage of modern, technically compliant facilities. Greater Lisbon recorded 205,594 sq m of take-up in the first nine months of 2025 (down 5% year-over-year), with logistics stock at 3.52 million sq m (+8% year-over-year) and a 3.66% vacancy rate, with the Sacavém-Alverca and Montijo-Alcochete corridors accounting for 57% of take-up driven by 3PL operators and distribution companies.
The MarketBeat Lisbon Office Q1 2026 report by Cushman & Wakefield covers demand, vacancy, rents, and development trends in the Greater Lisbon office market, finding that leasing activity increased 80% year-over-year to 28,910 square metres across 39 deals, the overall vacancy rate declined to 6.8%, prime rents remained stable except in New Office Areas where they rose to €22.00/sq.m/month, and six new buildings added 41,750 square metres with 286,050 square metres scheduled for delivery over the next three years. The TMT & Utilities sector drove 32% of quarterly demand, and Portugal's economy grew 2.3% in the first quarter, outperforming the Euro Area average.

The Cushman & Wakefield MarketBeat report for Lisbon's office market in Q4 2025 documents office demand, completions, vacancy rates, and rental trends across Greater Lisbon's seven submarkets. Year-end 2025 take-up reached 204,240 square meters (down 8% year-over-year), the vacancy rate stood at 7.0%, prime rents in the Central Business District reached €28.00 per square meter per month, and 61,200 square meters were completed in 2025 with 327,860 square meters expected over the next three years.

Europe's hotel construction pipeline reached 1,731 projects comprising 255,354 rooms at Q1 2026, representing a 3% year-over-year increase, with the early planning stage hitting a record-high 604 projects and 86,128 rooms. The United Kingdom, Turkey, Germany, France, and Portugal account for 46% of projects in the region's pipeline, and Europe is forecast to see 319 new hotels with 44,156 rooms open by the end of 2026.

Europe's hotel construction pipeline stood at 1,731 projects comprising 255,354 rooms at the close of Q1 2026, representing a 3% year-over-year increase, with early planning stage projects reaching a record high of 604 projects/86,128 rooms. The report forecasts 319 new hotels with 44,156 rooms to open across Europe by year-end 2026, with the United Kingdom, Turkey, Germany, France, and Portugal accounting for 46% of the region's pipeline projects.
Structured initially as a bridge loan to refinance existing debt and fund early works, with further drawdowns tied to construction milestones. Dated Feb 2025 — older-vintage than this batch's other rows (no more-recent update/re-financing found for this specific facility) but the only fully-verified Iberian financing surfaced this pass; included for genuine Portugal coverage rather than left at zero.

Portuguese hotel group Vila Gale bought the shuttered former Sheraton hotel at Reserva do Paiva, Recife, Brazil, from Portugal's Novo Banco, planning a 298-room resort reopening in October 2026; price undisclosed.