According to a CBRE study, 70% of investors believe the market has already recovered or will recover throughout the year.
Lisbon
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The European property market is gearing up for a dynamic year in 2025, with Lisbon standing out as one of the most attractive cities for investors. According to the European Investor Intentions Survey 2025, conducted by CBRE, 70% of investors believe the market has already recovered or will recover over the course of the year, following the challenges experienced in 2023.

In the European rankings, Lisbon now holds 8th place among the most preferred cities for property investment, further strengthening foreign interest in the Portuguese market. Francisco Horta e Costa, Managing Director of CBRE Portugal, highlights that "investor sentiment supports growth forecasts for the sector in 2025, representing a positive sign for the national market."

"This is very positive news, pointing to a year of progress for both the sector in general and the national market. Additionally, in line with CBRE's forecasts, sustainability emerges as a key factor across the board and should be considered by all stakeholders as a fundamental pillar in enhancing their assets, ensuring that supply aligns with demand needs." 

Portugal is not only among the Top 10 European cities for property investment but also ranks as the 6th best country in terms of investment returns. The country benefits from competitive yields and a resilient real estate sector, drawing the attention of international investors.

Trends and key sectors

The survey revealed that 92% of investors intend to maintain or increase their activity in the sector, with residential property being the most sought-after segment, followed by logistics and hospitality. For the first time, residential property was considered the most attractive sector, with 32% of investors identifying it as their top priority. Hotels and logistics spaces are also expected to appreciate in value, with projected increases of 3% and 1%, respectively.

Despite the positive outlook, prime office spaces and high street retail face challenges, with projected declines of 22% and 31%, respectively. The study also indicates that investors are increasingly focusing on alternative sectors, such as student housing and data centres, which have now overtaken senior housing in terms of interest.

Sustainability is emerging as a key factor in investment decisions, with 95% of respondents considering it essential. Furthermore, 13% of investors are willing to pay a premium for sustainably certified properties, demonstrating the growing value placed on eco-friendly and energy-efficient practices.