According to the “Real Estate Market Overview” study, 40,452 residential homes were sold in Portugal through June, a 19% increase compared to the same period last year.

Lisbon registered 5,415 sales, 21% more than in 2024, consolidating its position as the country’s leading market. Porto, meanwhile, saw 3,721 homes sold, 20% more than the previous year, representing “the best half-year performance since the pandemic.”

Despite this significant growth in demand, Savills cites “signs of stabilisation” in prices, both in Lisbon and Porto, including in the luxury segment, “suggesting a slowdown in comparison to the appreciation rates of recent years.”

In the rental market, the consultancy also points to a “significant increase” in supply: in Lisbon, 5,355 homes were available, 32% more than in 2024, and in Porto, 1,646, a 116% increase.

“This expansion in supply was accompanied by strong demand and a greater number of contracts signed, supporting a more moderate, but still positive, price trajectory,” it emphasizes.

Tourism

In the tourism sector, the hotel segment “returned to prominence as one of the market’s drivers,” with a real estate investment volume of 330.7 million euros in the first half of the year, a 16% increase year-on-year and a 27% share of total investment.

Savills reports the completion of six significant transactions during the period, notably the sale of the Hotel Miragem in Cascais, acquired for approximately €125 million, the largest transaction recorded in the first half of the year.

At the same time, the national hotel industry continued to grow, with the opening of 21 new hotels, adding approximately 2,000 rooms to the existing supply.

Retail

The retail sector also showed “solid performance” in the first half of 2025, according to the consultancy.

In shopping malls, cumulative sales grew 4.7% and traffic increased 0.6%, “signalling a progressive recovery in consumer confidence,” while in high-street retail, especially in the prime areas of Lisbon and Porto, “the supply of new quality spaces remains limited, while demand remains high, particularly in the fashion and food retail sectors.”

According to the study, “the luxury segment has maintained its dynamism, with several international brands seeking to enter or strengthen their position in Portugal, although the lack of quality supply continues to be the main obstacle to expansion.”

“Brands are increasingly selective and demanding in choosing locations and the design of their stores, prioritizing experiences that complement their online presence,” notes Savills.

In Lisbon, the real estate consultancy says that “the main commercial arteries have maintained their attractiveness,” with Garrett, Carmo, and Augusta streets standing out, while in Porto, Santa Catarina, Aliados, and Flores streets continue to “lead street commerce and concentrate a large portion of demand.”