All News As we enter 2025, industry trends reflect the need for adaptation, innovation and the search for increasingly sustainable solutions.
The real estate market is transforming, with new dynamics driven by the growth of various sectors. Investors are showing a growing interest in diversification in terms of products and segments and in the choice of geographies.
The residential market in Portugal continued to be one of the main driving forces of the economy. In 2024, demand for real estate, especially in the metropolitan centres of Lisbon and Porto, remained strong, driven by the supply shortage and constant demand from foreign investors.
In this sense, the year closed with a record average value of €2,548/m2, with €3,078/m2 in the Lisbon metropolitan area and €2,401/m2 in the Porto metropolitan area.
After the slowdown recorded in 2023 due to the sharp rise in interest rates that put pressure on property affordability (especially for first-time home buyers), 2024 will close with an appreciation of over 12%, which raises very positive expectations for 2025.
We believe prices will stabilise, with a slight increase and appreciation but a clear trend towards market consolidation. The number of transactions should stabilise to numbers similar to those before the interest rate increase.
The residential real estate market continues to experience strong demand, driven by several factors, such as government incentives for young people to purchase homes, a buoyant job market and the recent decline in interest rates.
In the central metropolitan regions, population growth, driven mainly by immigration, is a determining factor in this trend, reinforcing the need for new housing solutions.
International demand is also expected to remain high, with forecasts of growth in demand from Brazilian and North American clients, consolidating the attractiveness of the Portuguese market for foreign investors.
In the rental market, 2025 will be more balanced. The increase in the supply of properties for rent, driven by new legislative initiatives, will play a fundamental role. Given the ongoing pressure on purchasing power, renting will be an increasingly sought-after option for young people and families as an alternative to purchasing.
Finally, sustainability will also be highlighted. Urban renewal and rehabilitation are gaining ground, accompanied by the growing demand for energy-efficient buildings.
The office market underwent a period of transformation in 2023 and 2024. Although remote work has lost momentum, it has continued to influence the definition of workspaces, with companies seeking more flexible options, combining physical and virtual spaces. One trend was searching for larger offices with features favouring employee interaction and well-being.
In 2025, we believe the way forward will continue to be flexible and adaptable of spaces, with increased demand for offices, whether “hybrid offices” and coworking centres or traditional offices. Companies are seeking to create conditions for employees to return to the office, a trend that by 2025 will lead to an average stay of 3 to 4 days in the workplace. The sustainability of buildings will also be on the rise, with a growing demand for spaces with environmental certifications.
The retail market in Portugal will face challenges in 2024, with the growth of online commerce continuing to put pressure on physical establishments. However, the sector has shown signs of recovery, especially in the commercial areas of large cities, with traders increasingly adapting to new consumer behaviours. Proximity commerce and more immersive physical shopping experiences have begun to dominate the market.
An even more significant reconfiguration in the retail sector is expected by 2025. Shopping centres and high streets will have to evolve, offering products, experiences, and integration with digital and living spaces, with an increasing focus on sustainable and eco-friendly solutions. The emphasis on digitalisation and technologies that integrate the physical and online experience will be one of the keys to the sector’s success.
The industrial and logistics segment benefited the most in 2024, with the continued search for storage and distribution spaces driven by the expansion of e-commerce. Due to its strategic location and efficient transport infrastructure, Portugal has seen growth in the construction of warehouses and logistics centres, especially in the north and along the coast.
In 2025, the logistics segment is expected to continue growing, strongly emphasising sustainability. Transitioning to greener solutions, such as renewable energy distribution centres and green building practices, will be a priority for investors. Furthermore, automation and technology will have an increasing impact on warehouse efficiency, with an increase in the use of artificial intelligence and robotics in logistics processes.
Finally, a reference to Data Centers, the digital factories of the future, which will experience exponential growth in the country in the coming years due to our strategic position, close to the main submarine cables, and the robust capacity for renewable energy production.
