Portugal’s commercial property sector continues to attract growing levels of foreign investment, with Spanish investors significantly increasing their presence in the market, particularly in the north of the country.
According to Cristina Almeida, director of the Porto office of JLL, Spanish family offices began showing strong interest in Portugal around 18 months ago, focusing primarily on hospitality and retail assets.
Speaking to Diário de Notícias, Almeida said investors from neighbouring Spain see formidable “potential for appreciation and high-quality assets” in Portugal, at a time when the Spanish property market is considered “highly mature and overheated”.
Spanish investors are now regarded as the second most active foreign nationality in northern Portugal, behind only the French and ahead of American buyers. The region’s increasing appeal within the national market is also reflected in investment volumes: of the €2.8 billion invested in Portugal’s commercial property sector last year, around half was directed towards the north.
Despite the ongoing momentum, industry figures warn of mounting structural challenges, such as the shortage of available land and rising construction costs.