Portugal Emerges as Europe’s Bright Spot in Global Value Shift

As international investors reassess opportunities amid changing yields and global economic realignment, Europe is increasingly seen as offering stronger relative value than the United States, according to a new report.

CBRE Investment Management’s Europe’s Fantastic Four report, published in October 2025, reveals that the balance of opportunity has tilted towards Europe. CBRE co-CEO and Chief Investment Officer Adam Gallistel notes that since the global financial crisis, American limited partners have tended to focus on their home market — a strategy that no longer aligns with current realities.

Across metrics such as replacement costs, value discounts, capital flows, and spreads to risk-free rates, Europe now leads the field.

European open-end core equity values remain 25% below their peak, compared with 20% in the US. Yet, US funds are attracting 4.3 times more capital, creating less competition and easing pricing pressure within Europe.

With stronger rental growth (2.5% vs. 1.9%), lower vacancies (6.2% vs. 9.6%), and an additional 40 basis points of risk premium, the European market presents a notably more attractive investment proposition.

And among European markets, Portugal stands out.

“CBRE’s analysis confirms what we’ve seen for two years,” says Paul Stannard, Founder and Chairman of the Portugal Investment Owners Club. “Portugal offers discounted entry values, robust rental fundamentals, and a lifestyle dividend that can’t be quantified.”

From Lisbon to the Algarve, Portugal has evolved into a key pillar of European real estate. Its regulated alternative investment funds — many qualifying under the Golden Visa programme — provide transparent, professionally managed access to both yield and residency.

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“Families and funds are diversifying into Portugal not only for returns,” Stannard adds, “but for stability, EU access, and ownership in one of the world’s safest, most liveable countries.”

Data reinforces this trend. According to Amanda Collison, Senior Analyst at Property Market Index, Portugal achieved the strongest capital growth in Europe’s luxury new developments in 2025, led by Lisbon, Comporta, the Algarve, and Porto.

Double-digit appreciation in sought-after areas such as Cascais highlights real demand and limited supply.

“With Europe’s core markets offering better value and Portugal delivering consistent 5–10% rental yields, capital is rotating here,” says Steve Philp, Partnership Director at Portugal Pathways. “Investors want growth, clarity, and governance — all strengths of Portugal’s regulated framework.”

CBRE also points to structural tailwinds across Europe: an ageing building stock, stricter sustainability standards, and limited new construction — all factors likely to support long-term rental and capital growth.

Paul Sheedy, Special Advisor to the Portugal Future Fund, adds: “Portugal’s clean energy, tourism, and infrastructure sectors meet both growth and ESG mandates, positioning it for institutional expansion.”

“In a world where investors seek both security and purpose,” concludes Stannard, “Portugal is setting the benchmark for intelligent, values-driven European investment.”

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About Portugal Future Fund

The Portugal Future Fund strategically invests in key sectors, driving growth and innovation across Portugal. Approved for Portugal’s Golden Visa residency-by-investment, it offers a unique opportunity for impactful and rewarding participation.

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