What does Real Estate Investment look like in Portugal for 2022? 

What does Real Estate Investment look like in Portugal for 2022? 

Real estate investment is looking to be one of the promising sectors for growth in 2022. Areas that are gaining particular interest from investors are logistics, office space, affordable housing, and student residences.  

After seeing a drop during the pandemic, the interest in land and development investment, both from national and international buyers, is approaching pre-covid levels. In 2020 more than half of all real estate transactions in Portugal were purchased by international clients. The British and French remain very much key players in the Portuguese real estate market, but Brazilians have shown up as the main investors.


In 2020 in Portugal, 272,000 square metres were occupied by warehouse and logistics space. This was a growth of 24% compared to 2019, thought to be largely due to the increased demand for delivery services and online shopping during the pandemic. In 2021, there were many more plans announced for expansion within this sector. 

US giant Goldman Sachs Asset Management shared that it will invest more than a billion euros in the Iberian peninsula for development within the logistics sector over the next three years. This investment, like those made by various others companies, was in response to an issue seen in most sectors of real estate in Portugal, the significant lack of supply for the current level of demand. 

Office Space

The demand for office space has also seen an increase. Whilst teleworking is something that is likely to remain a part of our daily life even after restrictions are lifted, the demand for office space is still seeing an increase, with many companies adapting their office space, or investing in new infrastructure. 

There has been an increased demand for offices with more open-plan layouts, spaces for creative employees to share ideas, both in-person meeting rooms and rooms for video meetings. The health and well-being of workers is quickly becoming more of a focus and a higher priority. Current office spaces will need to be adapted and upgraded to suit this shift in priorities among both company owners and workers. 

Affordable Housing

Many properties for rent within the cities of Lisbon and Porto, as well as across the Algarve, are alojamento local (AL). This means these are generally only for short-term rent and are primarily aimed at tourists. 

With a lot of accommodation in these areas primarily catering to tourists and short term renters, prices are often pushed much higher for those looking for long term accommodation. There is a huge demand for affordable housing and rental properties across the country, and many programmes have been put in place to encourage developments for this purpose. As such, this is a sector that is likely to see decent growth across 2022. 

Student Residences

Student accommodation represents a huge opportunity for investors in Portugal. There is an estimated shortage of 20,000 beds for student residences and as restrictions lift, the number of international students is likely to rise as well. This means that this sector will offer huge opportunities for growth in 2022.

The development of student residences in cities like Lisbon and Porto, with features such as social areas, study areas, bars, terraces and barbecue areas are also on the increase, and the demand for this type of accommodation will likely follow the same trends seen in other similar cities across Europe.

Another important shift seen across all commercial real estate is one towards environmental sustainability. Portugal has already taken steps towards ensuring real estate development is more climate-conscious, with energy efficiency and renewable energies becoming a bigger priority.

Developers have been integrating more electric car chargers in parking garages in central Lisbon, ensuring more sustainable materials are being used and energy efficiency has been a focus in newer builds. There has been a substantial rise in awareness about environmental matters and a consequential increase in demand for property and products that are more sustainable.