Portugal has emerged as an attractive destination for commercial property investment, driven by economic stability, a favorable business environment, and increasing international interest. Key cities such as Lisbon, Porto, and Faro continue to attract investors, bolstered by Portugal’s strategic location, competitive operational costs, and growing tourism sector.
Market Trends:
The Lisbon commercial real estate market is particularly dynamic, with strong demand for office spaces, especially in technology, financial services, and shared workspaces. Porto is increasingly becoming a hub for logistics and back-office operations, while the Algarve region presents opportunities in hospitality and retail due to sustained tourism growth. Retail spaces in major urban centers remain competitive, with prime high street locations commanding premium rents.
Investment Climate:
Portugal offers favorable tax regimes for foreign investors, including the Non-Habitual Resident (NHR) program and Golden Visa scheme, which continue to attract international capital. The country’s stable political landscape and access to EU markets enhance its appeal. Despite a tightening of fiscal incentives for residential property, the commercial sector remains largely unaffected and is considered an attractive, resilient investment.
Key Sectors:
Offices: Increasing demand for modern, sustainable office buildings with flexible layouts.
Retail: Prime retail spaces in Lisbon and Porto remain sought-after, with resilience in the grocery and luxury sectors.
Industrial & Logistics: Strong growth driven by e-commerce and the expansion of logistics hubs near Porto and Lisbon.
Hospitality: High investor interest, supported by Portugal’s thriving tourism industry and global appeal.
Outlook:
The Portuguese commercial property market is expected to remain buoyant, supported by economic growth, continued demand from international tenants, and infrastructure improvements. Yield compression may persist in prime assets, but secondary markets offer potential for higher returns.