Real Estate Market
Portugal’s housing market remains fundamentally undersupplied, keeping upward pressure on both prices and rents. By late 2025, national median bank appraisal values reached around €2,025 per sqm—a year‑on‑year gain of nearly 18%—with Lisbon, Porto, and coastal areas leading the rise.
In 2026, double‑digit price growth is expected in prime Lisbon and Porto properties, as well as in high‑value coastal regions such as the Algarve and parts of Alentejo. Despite a gradual cooling from previous record levels, tight supply and resilient demand continue to support price appreciation. Structural drivers—favorable demographics, lifestyle migration, and tourism—add stability to the market’s long‑term outlook.
The end of the Non‑Habitual Resident regime and the removal of real estate from the Golden Visa program have tempered some speculative flows, yet higher‑quality, long‑term investors have taken their place. Capital is increasingly directed toward build‑to‑rent projects, senior living, student accommodation, and hospitality‑linked developments that cater to digital nomads and high‑value tourism segments.
Commercial and Institutional Investment
Commercial investment volumes grew around 17% in 2025, with 2026 projected at about €2.4 billion—an 11% decline but still elevated historically. Prime yields remain stable, and asset performance is solid across logistics, data centers, healthcare, and convenience retail. These segments benefit from e‑commerce growth, reshoring dynamics, and Portugal’s expanding services sector.
High‑quality offices in Lisbon and Porto with strong ESG (environmental, social, and governance) credentials continue to attract long‑term tenants from multinational firms. Logistics facilities positioned near major transport corridors gain from Iberian supply‑chain repositioning, while luxury hotels and branded serviced apartments remain favoured by high‑net‑worth individuals and extended‑stay professionals.
