Hospitality and retail emerged as the standout segments and together accounted for more than 70% of total investment. Hospitality led with 39% of the volume and a 130% year‑on‑year increase, supported by the strength of tourism. Retail secured 37% of activity, benefitting from stable footfall levels and a limited supply of prime assets available in the market. It is also important to note that 53% of the total retail investment volume corresponded to the sale of stakes related to Gaia Shopping and Arrábida Shopping, acquired through a partnership between Sonae Sierra and Crédito Agrícola.

The office segment accounted for only 5% of investment in the first quarter, reflecting a 53% year‑on‑year decline. This performance does not result from a lack of available product, nor from weak occupational demand. On the contrary, it is mainly explained by a mismatch in price expectations between buyers and sellers, which continues to delay the conclusion of transactions. In addition, Portugal faces growing competition from other European markets that offer competitive yields and increasingly vie for investors’ attention.

Logistics and data centres gain traction
Logistics shows a broadly similar structural dynamic. Although it remains one of the most sought‑after asset classes in European markets, transactional volumes in Portugal remain constrained by the limited supply of prime assets coming to market.

Data centres appear for the first time with a 5% share of investment, marking the entry of this type of asset into investors’ strategies in Portugal and mirroring the expansion of digital infrastructure across Europe.

According to Pedro Figueiras, Director, Head of Lisbon at Savills Portugal, “the start of 2026 confirms the robustness of the commercial real estate investment market in Portugal: we are seeing deals closing and sustained appetite from both domestic and international investors, particularly in segments with stronger fundamentals. In a context where Southern Europe continues to attract attention through a combination of growth, tourism demand and the reconfiguration of logistics chains, Portugal stands out for its stability, the quality of its product and its ability to offer opportunities with a very competitive risk/return profile. We look to the coming quarters with optimism, supported by capital appetite, the ongoing transactional pipeline and the country’s structural attractiveness.”

Investors and average deal size
On the capital side, the quarter was marked by the strong presence of institutional investors and private equity funds. Together, these two categories accounted for 64% of the capital placed, split between 34% for institutional investors and 30% for private equity funds. Domestic capital consolidated a 47% share, reflecting the confidence of Portuguese investors in their home market, while the United States, Spain and France accounted for 37% of cross‑border activity.

The volume transacted was also driven by an increase in the average deal size, which reached around €32.5 million, approximately 2% above the level recorded in the previous year.

Yields and supportive financial context
Although global uncertainty persists, Portugal’s stable political environment, solid occupational fundamentals and consistent investor demand position the country as one of the most resilient real estate markets in Southern Europe.

With the ECB’s key interest rate currently at 2.15% and prime yields ranging between 5.00% and 7.00% across the main real estate segments analysed, the spread between real estate returns and 10‑year government bonds is widening again, a dynamic which has historically preceded the recovery of transactional volumes and increased investor activity.