The European real estate market is poised for a vibrant 2025, with Lisbon shining as a prime destination for investors. The European Investor Intentions Survey 2025, by CBRE, reveals that 70% of investors believe the market has either bounced back or will do so this year, overcoming the hurdles of 2023.
Lisbon now ranks 8th among Europe’s most desirable cities for property investment, bolstering international interest in Portugal. Francisco Horta e Costa, Managing Director of CBRE Portugal, emphasizes that "investor confidence bolsters growth predictions for 2025, a welcome sign for the national market."
"This positive outlook suggests a year of progress for both the wider industry and the Portuguese market. Moreover, in line with CBRE’s forecasts, sustainability is crucial and should be viewed by all stakeholders as a foundational element in enhancing assets and ensuring supply meets demand."
Portugal’s presence in the Top 10 European cities for property investment is complemented by its 6th place ranking for investment returns. Attractive yields and a robust real estate market are attracting international investors.
Emerging Trends and Key Areas
The survey indicates that 92% of investors plan to maintain or increase their involvement, with residential property leading the way, followed by logistics and hospitality. Residential property has become the most attractive sector, with 32% of investors naming it as their top choice. Hotels and logistics spaces are also projected to gain value, with increases of 3% and 1%, respectively.
However, prime office spaces and high street retail face headwinds, with projected decreases of 22% and 31%, respectively. Investors are also increasingly turning to alternative sectors like student housing and data centers, now surpassing senior housing in popularity.
Sustainability is increasingly important in investment strategies, with 95% of respondents deeming it crucial. Additionally, 13% of investors are prepared to pay more for sustainably certified properties, highlighting the rising value of eco-friendly and energy-efficient methods.
