Portugal’s investment market launched 2026 with remarkable strength, defying expectations and positioning the year as a potential new record. The first quarter alone surpassed €900 million in transaction volume, reflecting a robust 37% year-on-year increase compared to Q1 2025. Landmark deals above €100 million indicate the depth of available capital and a continued strategic approach towards resilient assets with strong fundamentals.
Retail and hospitality emerged as the dominant forces in early 2026, jointly accounting for approximately 75% of total investment volume. Hospitality alone represented close to 40%, driven by high-profile transactions such as the sale of Penha Longa Resort in Sintra and the InterContinental Hotel in Porto, both acquired by international investors. This sector’s momentum was bolstered by the joint venture between L. Catterton and Cedar Capital.
Retail maintained its strong positioning, capturing around 38% of total investment. Shopping centres once again led activity within the segment, with approximately €230 million transacted across two major deals. The acquisition of 70% stakes in Arrábida and Gaia Shopping—seed assets for the new open-ended Mais Capital fund—and Alameda Shop & Stop, purchased by Square Asset Management.
Retail parks also continued to attract investor interest, with notable transactions including Matosinhos Retail Park and Alta Retail Park in Lisbon. These assets were acquired by Montepio Gestao de Ativos and the JV between Ares and Redevco, respectively. The I&L segment also stood out, with around €150 million transacted, representing approximately 27% of total volume. A key highlight was the €120 million acquisition of the Covilhã Data Centre by Asterion Industrial Partners.
Q1 2026 saw a stronger presence of international capital, accounting for roughly 60% of total investment, while domestic investors maintained a significant 40% share. Open-ended funds, institutional investors, and private capital continue to be the most active profiles in the market. This diverse mix of capital sources suggests a stable foundation for continued activity.
While the first quarter performance has been undeniably strong, rising geopolitical tensions—namely the ongoing Iran conflict—are introducing a degree of uncertainty. Concerns around inflation and potential interest rate implications may temper investor sentiment in the coming months. However, the underlying market conditions suggest resilience is likely to persist.
Even so, liquidity remains abundant, and investor discipline is expected to prevail. Portugal’s strong fundamentals and strategic location should continue to attract international capital. At the same time, domestic investors—particularly open-ended funds and private capital—are expected to remain resilient and active, underpinning market activity throughout 2026. Current pipeline and ongoing deal flow point to a very robust year in overall investment volume, with hospitality, retail and offices expected to remain among the most sought-after sectors.
