Commercial real estate investment in Portugal totalled around €2 billion in the first nine months of 2026, in line with the same period last year, up 1% year-on-year, according to JLL’s latest Market Dynamics report. The consultancy notes that the third quarter points to a gradual change in the structure of the market, both in the origin of capital and in the allocation of investment across asset classes.
Portuguese investors accounted for 39% of the volume invested to September. Although foreign capital still represents the majority of the market, the domestic share shows Portuguese investors’ growing ability to compete for large deals. One example is the acquisition by a Portuguese private investor of an office building of around 16,800 sqm in Porto, in a deal valued at between €53 million and €55 million.
Together with the sale of Forum Algarve, valued at around €130 million, and the disposal of a Nido Living student housing portfolio with 883 beds, for an estimated €70 million to €80 million, these deals reshaped the sector mix in the third quarter. Retail returned to the top of the market with 33% of investment to September, followed by hotels with 26%. Offices doubled their share to 13%, level with industrial and logistics, while living and alternative assets accounted for around 15%.
Prime yields remained unchanged across all main segments in the third quarter, and Core Plus assets accounted for around half of all deals. “The growing share of domestic capital is one of the most significant signs of 2026 and shows Portuguese investors’ strong confidence in their home market. At the same time, retail and hotels are regaining a central role thanks to their ability to generate income, maintain high occupancy and benefit from structural trends linked to consumption and tourism”, noted Andreia Almeida, Head of Research at JLL Portugal.
In retail, prime high street rents stand at €160 per sqm per month in Lisbon and €90 in Porto, while prime shopping centre rents are around €130 per sqm per month. Retail yields stand at 4.25% for high street, 6.15% for prime shopping centres, 5.65% for food retail and 6.25% for retail parks. In hotels, overnight stays rose by 1.5% to August, occupancy reached 67% to September, and revenue grew by 5.1% to €5.13 billion to August.
Office take-up reached 98,000 sqm in Lisbon and 25,600 sqm in Porto to September, below 2025 levels but recovering. Prime rents stand at €32 per sqm per month in Lisbon and €21 in Porto, with prime office yields at 5.00%. Logistics take-up totalled around 334,000 sqm, with a development pipeline of more than 600,000 sqm, prime rents of €7.00 per sqm per month and rising, and a prime yield of 5.50%.
JLL expects a busy end to the year, supported by a significant pipeline of deals under way. If the transactions currently being negotiated close on schedule, the market could end the year above 2025 levels, led by retail, hotels and offices. “Portugal continues to stand out for its stability, transparency and diversified base of domestic and international investors”, added Carlos Cardoso, CEO of JLL Portugal.
