Emerging Commercial Real Estate Trends in Southern Europe for 2026 and Beyond
Southern Europe continues to attract international capital, with Portugal standing out as a highly investable commercial real estate market. Looking ahead to 2026 and beyond, a number of structural trends are shaping opportunities across retail parks, shopping centres, hotels and mixed‑use commercial assets — particularly in Portugal’s key regional markets.
For investors seeking resilient income, long‑term value creation and exposure to stable European demand drivers, understanding where and how these trends play out locally is critical.
Portugal’s Regional Investment Landscape
Portugal is no longer viewed as a single, uniform market. Investment performance is increasingly driven by regional dynamics, infrastructure, tourism flows and local demographics.
Greater Lisbon continues to attract institutional capital, supported by population growth, international business activity and limited prime supply. Retail parks and dominant shopping centres in suburban Lisbon remain particularly sought after.
Porto and Northern Portugal offer attractive yield profiles and growing domestic demand, with retail and hospitality assets benefiting from rising tourism and improving transport connectivity.
The Algarve remains a core hospitality and leisure market, but also presents opportunities in convenience‑led retail parks and service‑oriented commercial assets serving year‑round residents as well as visitors.
Secondary regional cities are increasingly on investor radar, where modern retail parks and well‑positioned commercial schemes often face less competition and offer stronger income resilience.
Retail Parks: Location‑Driven Resilience
Retail parks continue to outperform many traditional retail formats across Portugal. Their success is closely linked to car‑accessible locations, strong catchment demographics and tenant mixes focused on essential and value‑driven retail.
Across Lisbon’s outer municipalities, Porto’s suburban zones and key regional centres, investors are targeting retail parks anchored by food retail, DIY, electronics and discount operators. These assets typically offer:
Stable footfall driven by convenience rather than discretionary spend
Long leases with inflation‑linked rent structures
Strong appeal to international retailers expanding their Iberian presence
Rather than pure retail growth, value creation is increasingly driven by asset management and repositioning strategies tailored to local consumer behaviour.
Hotels and Hospitality: Beyond Seasonal Tourism
Portugal’s hospitality sector continues to benefit from diversified demand across business travel, lifestyle tourism, digital nomads and long‑stay visitors. This is especially visible in Lisbon, Porto and the Algarve, where occupancy is increasingly supported year‑round.
Investors are showing growing interest in:
Branded and lifestyle hotels in urban centres
Mixed‑use hospitality assets incorporating retail and food & beverage
Repositioning opportunities in established destinations with strong fundamentals
This shift supports more predictable income profiles and long‑term operational stability.
Sustainability and ESG as Investment Fundamentals
Sustainability has become a core investment consideration rather than a secondary factor. In Portugal, energy efficiency upgrades, modern building systems and ESG‑aligned strategies can materially enhance asset value and future liquidity.
Assets that meet evolving environmental standards are increasingly favoured by tenants, lenders and institutional buyers — a trend expected to intensify through the next investment cycle.
Investment Implications for 2026 and Beyond
Portugal’s commercial real estate market offers compelling opportunities for investors focused on:
Retail parks with defensive, location‑driven income
Shopping centres with clear regional dominance and repositioning potential
Hospitality assets supported by diversified, non‑seasonal demand
Success will depend on careful asset selection, regional insight and access to opportunities aligned with local market dynamics.
Working with Landom Group
Accessing the right opportunities in Portugal requires on‑the‑ground knowledge, trusted relationships and a clear understanding of investor objectives.
Landom Group advises international investors on the acquisition and investment of retail parks, shopping centres, hotels and other commercial assets across Portugal’s key regions. Our focus is on identifying assets with strong fundamentals, realistic growth strategies and long‑term value potential.
If you are actively exploring commercial real estate investment in Portugal — or would like to discuss current or upcoming opportunities — we invite you to contact Landom Group for a confidential, no‑obligation conversation.