Largest real estate deal of 2025 exceeds €191 million

Real estate is once again leading the way in mergers and acquisitions (M&A) in Portugal this Christmas – and this time, the driving force may well be a deal in the area of the former Feira Popular of Lisbon, which has been on a real rollercoaster ride. By paying the Fidelidade insurance company €191.99 million to set up its future headquarters in Entrecampos, the Bank of Portugal topped the list of real estate-related transactions in 2025.

The property in question has a gross construction area of around 32,000 square metres and is valued at around €192 million, with the finalisation of the deal with Fidelidade – Property Europe S.A. expected by the end of 2027. This is a project shrouded in controversy, because the Government has decided to request an audit, to be carried out by the Inspectorate-General of Finance, and the Court of Auditors has agreed to do the same. This is because the final cost could exceed €235 million, according to an investigation by the newspaper Observador.

A single transaction in Portugal reaching three figures is relatively unusual, although the market continues to suffer from a problem that has also existed in previous years: the disclosure of figures. At the international level, without Portuguese companies, but in Portugal, Nido Living stood out with the purchase of Livensa Living’s portfolio of five student residences for around €300 million.

More than 80 deals by November

Real estate remains the most attractive asset for M&A deals involving Portuguese companies. Between January and November, real estate was the most dynamic segment of activity in the country, with 83 transactions recorded (between announced and completed deals between Portuguese companies), according to official data from TTR Data.

Behind this is a context of “strong demand, robust operational performance of assets and a favourable macroeconomic environment,”’ Carlos Cardoso, CEO of JLL Portugal, told ECO.

Total investment in real estate is estimated to have exceeded €2.7-€2.8 billion, representing an increase of more than 20% compared to 2024, according to the business intelligence team at consultancy firm Dils and JLL. Foreigners accounted for more than half (65%) of this amount, although domestic players remain active, especially real estate investment funds.

For example, three days before Christmas, Portugal’s Openbook completed the sale of one of the main assets in Allianz Portugal’s real estate portfolio, located in the centre of Lisbon. The property in question is a building located at the intersection of Rua Braamcamp and Rua Castilho, with a gross construction area of 8,205 square metres spread over 14 floors.

It is one of the cases that fuels the office market and accounts for more than 20% of the accumulated investment of €2.7 billion and a capital allocation almost three times higher than in 2024, signalling a return to attractiveness. However, retail real estate led the way, accounting for almost a third of the volume. This was followed by hotels and industry and logistics, which more than doubled the volume invested year-on-year, according to Dils.

“These preliminary results for 2025 confirm the strength and attractiveness of the Portuguese real estate market, which continues to consistently attract national and international investment. The diversity of capital, with a strong presence of international investors and active participation by national players, reinforces the maturity and resilience of the sector”, says Pedro Lancastre, CEO of Dils Portugal.

The table on the Reuters portal, which includes real estate deals in Portugal, including commercial and residential REIT (Real Estate Investment Trust) funds, also highlights the purchase of Forum Madeira by Spain’s Castellana Properties for €63.3 million from DWS, as well as the acquisition of Alvaláxia by Sporting CP SAD for €17 million.

Carlos Cardoso of JLL argues that, throughout this year, there has been a “market reconfiguration” in terms of both sectors and geographical areas. The north stood out by concentrating approximately half of the investment and confirming a trend towards greater territorial diversification.

In terms of competition, it was a northern property that stood out in the final stretch of 2025. Cushman & Wakefield told ECO that it had received “several proposals from national and international investors” to buy the Nexponor portfolio, managed by Insula Capital, which includes the Exponor exhibition centre in Matosinhos.

It is one of the deals that, like Banco de Portugal, was announced in the last 12 months but is moving on to other stages of the calendar.

The managing director of Cushman & Wakefield in Portugal, Eric van Leuven, says that “2025 ends with a solid and evolving Portuguese real estate market, marked by growth in investment and resilience in the face of global uncertainties”, so that “investor confidence reinforces the attractiveness of the sector and paves the way for new opportunities” for next year.

In addition to the signing of the Banco de Portugal promissory contract, Eric van Leuven lists one deal for each quarter:

• 1st – Sierra Prime acquires the 50% stake in Norteshopping that it did not already own from Nuveen, in a deal worth over €300 million (announced in 2024).
• 2nd – Sale of the Miragem Hotel in Cascais to Ibervalles and ARD Development for €125 million and four shopping centres (Fórum Madeira, Nosso Shopping, La Vie Caldas and La Vie Guarda) for a total value of over €170 million.
• 3rd – Nido Living purchased Livensa Living’s portfolio of five student residences in Portugal for around €300 million (international companies).
• 4th – Sale of office buildings in Parque das Nações, the Siemens campus in Alfragide and Torre Oriente do Colombo, which together exceeded €250 million.

In view of these and other transactions during the course of this year, the sales director of Engel & Völkers in Lisbon, Oeiras and Setúbal, Daniela Rebouta, explains that there has been “a clear increase in selectivity on the part of national and international buyers, and a growing prioritisation of aspects such as sustainability, construction quality and energy efficiency in properties, which consequently influenced the valuation of properties that excel in these characteristics”.

As a result, the Portuguese property market continued to see an increase in demand and house prices, “particularly in prime locations and coastal areas”. “Portugal’s position as a leading destination in the international market has been maintained due to constant demand from foreign investors, who increasingly value the quality of life, mild climate and security that Portugal can offer them”, argues Daniela Rebouta.

It is also important to highlight data centres, which are shaking up the real estate market. There are currently more than 30 data centres in operation in the country and another 12 under development. “Portugal has a significant set of competitive advantages for the development of the data centre market, from its strategic geographical location and climatic stability to its growing commitment to renewable energy”, says Augusto Lobo, head of Capital Markets at JLL Portugal.

However, this is a segment where there are still several challenges that generate risk and uncertainty, including the guarantee of electricity supply and “urban planning licensing processes, which remain complex and time-consuming, especially for international operators and investors who are unfamiliar with local procedures”, warns Augusto Lobo. It is, therefore, an area that is growing, but will face its litmus test in 2026, particularly with the advances of “Simplex” in the Construir Portugal programme.