The residential, tourism, and retail sectors have driven the positive performance of the Portuguese real estate market during the first half of the year, according to consulting firm Savills, which points to signs of confidence in the sector, albeit at different rates depending on the segment.
According to the “Real Estate Market Overview” study, 40,452 residential homes were sold in Portugal through June, a 19% increase compared to the same period last year.
Lisbon registered 5,415 sales, 21% more than in 2024, consolidating its position as the country’s leading market. Porto, meanwhile, saw 3,721 homes sold, 20% more than the previous year, representing the best half-year performance since the pandemic.
Despite this significant growth in demand, Savills cites signs of stabilisation in prices, both in Lisbon and Porto, including in the luxury segment, suggesting a slowdown in comparison to the appreciation rates of recent years.
In the rental market, the consultancy also points to a significant increase in supply: in Lisbon, 5,355 homes were available, 32% more than in 2024, and in Porto, 1,646, a 116% increase.
This expansion in supply was accompanied by strong demand and a greater number of contracts signed, supporting a more moderate, but still positive, price trajectory.
In the tourism sector, the hotel segment returned to prominence as one of the market’s drivers, with a real estate investment volume of 330.7 million euros in the first half of the year, a 16% increase year-on-year and a 27% share of total investment.
Savills reports the completion of six significant transactions during the period, notably the sale of the Hotel Miragem in Cascais, acquired for approximately €125 million, the largest transaction recorded in the first half of the year.
At the same time, the national hotel industry continued to grow, with the opening of 21 new hotels, adding approximately 2,000 rooms to the existing supply.
The retail sector also showed solid performance in the first half of 2025, according to the consultancy.
In shopping malls, cumulative sales grew 4.7% and traffic increased 0.6%, signalling a progressive recovery in consumer confidence, while in high-street retail, especially in the prime areas of Lisbon and Porto, the supply of new quality spaces remains limited, while demand remains high, particularly in the fashion and food retail sectors.
If you are looking to buy a property in Portugal, Spain or Greece and need a mortgage, email mark@vci-network.com for the latest criteria