Portugal still strong with pleasant surprises ahead

Portugal’s real estate market is currently “bipolar” according to Nuno Nunes, head of capital markets CBRE Portugal

The fundamentals are strong in sectors such as hotels and logistics and even in the office markets there are still a significant number of new tenants.

“In the best prime locations we are still feeling strong upward pressure on rents. But, on the other hand, we are seeing a very slow investment market.”

Nunes said that international investors have the weight and while national and local investors are still dynamic with many doing multiple transactions, these are typically of a smaller size which means total investment volumes are expected to fall significantly in comparison to 2022.

However, Nunes said there are several good opportunities in the retail, development and hotel sectors.

“We are still seeing a lot of international investors who may bring good surprises by the end of the year, closing several large size transactions.”