Booming commercial real estate: What to expect from offices, hotels and retail in Portugal?

The commercial real estate market in Portugal has shown signs of strength and growth, even in the face of global economic challenges. With sectors such as offices, hotels and retail adapting to new demands, 2025 looks like a promising year for investors attentive to emerging trends and opportunities.

Offices: Flexibility and sustainability in focus

The office segment is evolving in response to new working dynamics. Demand for flexible and sustainable spaces has increased, with companies valuing buildings that promote well-being and meet ESG (Environmental, Social and Governance) criteria. In Lisbon, prime rents are expected to exceed €30/m²/month by 2025, reflecting the shortage of qualified supply and the growing demand for modern, well-located spaces.

Hospitality: Recovery and sustained growth

After the challenges faced during the pandemic, the hotel sector in Portugal has been recovering consistently. In 2024, hospitality represented 21% of total investment in commercial real estate, with expectations of continued growth in 2025. Portugal's tourist attractiveness, combined with economic stability, continues to position the country as a destination of choice for investors in the hotel sector.

Retail: Resilience and adaptation to new trends

The retail sector has shown remarkable resilience, adapting to changes in consumer habits and consumer demands. In 2024, retail led investments in commercial real estate, accounting for half of the total volume transacted. The trend points to continued growth in 2025, driven by innovation and the integration of omnichannel experiences.

The commercial real estate market in Portugal is going through a phase of transformation and growth, with the office, hotel and retail sectors adapting to new realities and offering attractive opportunities for investors. The combination of factors such as flexibility, sustainability and innovation position Portugal as a competitive and promising market on the European scene.

If you are looking to invest in the dynamic Portuguese commercial real estate market, IR Group is ready to support you. With an experienced team and in-depth knowledge of the market, we help you identify the best opportunities and maximize the return on your investment. Talk to us and find out how we can help you achieve your investment goals.