The Porto property market continues to attract strong international investment across all sectors – from office spaces and hotels to high-street retail, logistics and residential real estate.
Thanks to its expanding economy and booming tourism sector, Porto has become one of Portugal’s most dynamic real estate markets, appealing to investors from across Europe, North America and beyond. This strong demand has placed pressure on some sectors, particularly offices, where limited availability has driven a steady rise in prime rents.
In retail, high-street shops are performing strongly while retail parks continue to expand. Meanwhile, the industrial and logistics market faces a shortage of available properties due to high occupancy rates, while the residential sector is showing unique market dynamics.
These trends were discussed at the Porto Property Pace Conference, organised by CBRE Portugal for the second consecutive year. According to José Maria Moutinho, CBRE Portugal’s Director of Research, “Porto’s residential sector faces a paradoxical situation: despite a large stock of vacant properties, prices continue to increase.”
He explained that “while the city is losing population naturally, it’s gaining residents through migration. This shift is reshaping housing demand and placing short-term pressure on the market.” Moutinho added that household sizes have decreased over recent decades, creating a mismatch between supply and demand: “Many homes in Porto are disproportionately large for today’s needs, which limits the absorption of available housing stock.”
Tourism growth has further boosted demand. Since the turn of the millennium, the number of visitors has increased almost fivefold, particularly in central neighbourhoods – directly influencing hotel property values and high-street retail assets.
“All this activity can be summarised in one word: scarcity,” Moutinho said. “Scarcity affects every real estate sector – yet it also creates opportunity, which manifests differently across segments and locations.”
Strong demand and limited supply in office and logistics sectors
Porto continues to see rising demand for office and logistics space, but availability remains low compared to other European cities. This imbalance has driven a consistent rise in prime rents over recent years.
According to Rui Moreira, CBRE Portugal’s Director in Porto, the North’s growing potential “explains why Porto and its surrounding region are increasingly on the radar of international real estate investors.”
So far in 2025, there has been a notable shortage of Class A office space in Porto’s CBD, encouraging the refurbishment of existing buildings and the creation of new business districts such as Vila Nova de Gaia and ZEP. The city is forecast to reach a take-up of 40,000 m², a 20% drop from the five-year average. However, prime office rents have risen slightly from €20 to €21 per square metre.
Investors have returned to Porto’s office market with renewed strength, with the city now representing 25% of Portugal’s total office investment volume – up from a 10-year average of just 5%. These investors are primarily seeking high-quality, ESG-certified assets capable of attracting top-tier tenants.
International tourism boosts hotel investment
The tourism market in Porto is dominated by international visitors, who account for around 85% of total demand. Growth from North America – particularly the United States and Canada – has been significant, rising by about 25% over the past decade.
Porto’s hotel sector is thriving, balancing renovation projects with new developments. The area around Avenida dos Aliados remains highly sought-after, and there is increasing geographic diversification of hotel supply.
Between 2019 and 2024, the number of hotel rooms in Porto grew from 10,000 to 14,000. Rising demand and a more diverse, high-quality offering have pushed hotel prices upward, reflected in higher ADR and RevPAR metrics. New hybrid projects are also emerging, blending hospitality with student housing, co-living, and co-working spaces.
High-street retail and retail parks on the rise
The Porto Property Pace Conference also highlighted the strong upward trajectory of high-street retail. Low tenant turnover has resulted in rising rents and limited availability of prime units.
Retail parks in Porto are also expanding, benefiting from growing demand for convenient, accessible, and functional retail formats.
Industrial and logistics: shortage creates investment opportunities
The industrial and logistics sector in Northern Portugal faces a shortage of stock due to high occupancy rates and strong rental growth, particularly in well-connected peripheral areas. These locations present opportunities for asset refurbishment and built-to-suit project development in prime zones.
“All real estate sectors in Porto are seeing strong investor appetite, particularly from foreign capital, which is showing great interest in Class A offices and logistics properties. Supported by solid fundamentals and high occupancy levels, the living and retail sectors are also thriving,” said Rui Moreira.
“For the first time, we are seeing international investors choosing Porto and Northern Portugal as their entry point into the country. The city has established itself as a key market for completed asset transactions, maintaining a strong position alongside Lisbon in high-value investment operations.”