Portugal foreign direct investment and real estate trends

In the first half of 2026, Portugal’s investment landscape was characterized by a recovery in total foreign direct investment (FDI), which reached €6.7 billion, bringing the total FDI stock to €225.1 billion, or 71% of the nation's GDP.

Commercial real estate investment demonstrated resilience, growing by approximately 14% to over €1.4 billion compared to the first half of 2025. This growth was supported by significant transactions, such as Sonae Sierra’s €180 million purchase of Gaia Shopping & Arrábida Shopping and Orion Capital Managers’ acquisition of a majority stake in Corinthia Lisboa for roughly €150 million. While hospitality and industrial/logistics sectors remained active, the office segment in Lisbon saw a 20% decrease in occupational activity and minimal transaction volume, reflecting an ongoing price discovery process.

Despite the overall commercial growth, foreign investment specifically within the real estate sector declined by 10.5% to €1.7 billion. Although international capital accounted for 76% of the invested volume, quarterly investment in the second quarter fell to €462 million, an 18% decrease from the same period in 2025. Analysts attribute these fluctuations and the more selective approach by investors to geopolitical tensions in Ukraine and the Middle East, alongside volatility in interest rates and energy prices.