Сommercial Real Estate Market in Portugal

Over the last several years, the Portuguese commercial real estate market has experienced a surge in demand from overseas investors. Below we describe the most popular types of commercial real estate in Portugal.


Retail real estate is a dynamic business with several potential for investors. Investing in this area may range from long-term stable properties with blue-chip (AAA) tenants like Pingo Doce (www.pingodoce.pt) or Continente (continente.pt) to more risky assets with newbie tenants that are looking to open their startup-restaurant.

It’s an appealing sector – the average rental yields of 4 – 7% for retail properties and a bit higher rental yields of 5 – 7.5% for shopping centers.


It is the most common form of commercial real estate, accounting for 80% of all sales in 2022. International investors are particularly fond of the Lisbon office spaces. With a restricted supply and an expanding number of multinational firms, investing in an office building in Portugal can provide investors with a rental yield of 4 – 6%.

Industrial and Logistics

Long-term leases of up to 25 years and strong rental returns of 6 – 7.5% are usual for logistic facilities in Portugal. This sector covers the majority of assets used for storage, distribution, or assembly, although it may also include operations that combine office and industrial space.


Portugal is a famous tourist destination due to its mild temperature and stunning nature. The diverse topography and distinct cultures draw dozens of millions of tourists from all over the world.

Purchasing a hotel in Portugal might be a profitable investment in real estate. Hotels ranging from well-known brands to smaller boutique hotels would profit from considerable tourist growth year-over-year. The returns to expect here might be up to 10% yearly. 

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