According to the latest Dils Recap report, published by real estate consultancy Dils, investment between January and September increased by 7% compared with the same period last year.

The third quarter alone generated €630 million in transactions, representing a 33% increase on the previous three months.

Foreign investors accounted for 75% of investment during the quarter, while more than 80% of transactions by value involved established properties considered to offer relatively dependable returns.

The figures suggest that Portugal continues to attract international property investment in spite of economic uncertainty and more selective purchasing decisions.

Retail properties were the most active segment between July and September, accounting for €195 million, or approximately 31% of total quarterly investment.

Over the first nine months of the year, retail investment reached €611 million, although this remained 8% below the equivalent period in 2025.

One of the most notable transactions was the sale of Forum Algarve, the shopping centre in Faro, which marked the entry of Alfana Investment Management into the Portuguese market.

The acquisition demonstrates the ongoing enthusiasm in established commercial properties outside Lisbon and Porto, particularly those with existing tenants and established customer bases.

Hotels attract significant investment

Portugal’s hotel sector also recorded substantial activity, attracting €590 million in investment during the first nine months of 2026.

According to Dils, this already exceeds the total annual investment recorded in the sector during both 2024 and 2025.

Hotel transactions reached €78 million during the third quarter, with the acquisition of Tróia Design Hotel by Arrow Global among the largest deals.

The report also identified continued expansion in hotel accommodation.

Portugal added 3,253 hotel rooms during the first nine months of the year, with approximately 1,600 additional rooms expected to enter the market before the end of December.

Tourism performance varied between destinations.

In the Algarve, average daily hotel rates and revenue per available room both increased by 3% compared with the corresponding period last year.

Lisbon recorded a 5% decline in revenue per available room, reflecting weaker occupancy and average room rates.

Offices and logistics show mixed results

Office investment reached €112 million in the third quarter, its strongest quarterly performance of 2026.

However, the €175 million invested since January remained approximately 40% below the same period in 2025.

In Lisbon, the office vacancy rate fell to 8.4%, with availability below 5% in some central business districts.

Prime office rents remained at €32 per square metre per month in Lisbon and €21 in Porto’s Boavista business district.

Industrial and logistics property attracted €384 million during the first nine months, already exceeding the total reported for the whole of 2025.

Demand for industrial space increased by 60%, although logistics take-up declined by 16% compared with the previous year.

Separate research from CBRE also points to steady investment activity. The third-quarter report recorded approximately €2 billion in transactions during the first nine months, an annual increase of 6%.

Another consultancy, Worx, reported €2.1 billion over the same period, up 11%, and forecast that annual investment could reach between €2.6 billion and €2.75 billion.

The different estimates reflect each consultancy’s market data and reporting methodology.

CBRE has issued a higher full-year forecast of more than €3 billion, based on transactions expected to be completed during the final quarter.

Both forecasts remain projections rather than confirmed investment.

The latest figures concern commercial property transactions, including retail centres, hotels, offices and logistics facilities, rather than the overall value of residential home sales in Portugal.

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