How Portugal is leading Europe’s value revival as capital pivots from the US

As global investors adjust to shifting yields and economic realignment, Europe now offers stronger relative value than the US, according to a new report.

It is the finding of CBRE Investment Management’s Europe’s Fantastic Four report published in October 2025.

CBRE co-CEO and Chief Investment Officer, Adam Gallistel, says that since the global financial crisis, American limited partners have largely stayed domestic - a strategy that no longer aligns with current trends.

Across replacement costs, value discounts, capital flows, and spreads to risk-free rates, Europe now holds the advantage.

European open-end core equity values remain 25% below their peak, compared to 20% in the US. However, US funds are raising 4.3 times more capital, resulting in far less competition and lower pricing pressure in Europe.

Combined with higher rental growth (2.5% vs. 1.9%), lower vacancies (6.2% vs. 9.6%), and roughly 40 basis points of additional risk premium, Europe’s investment case is increasingly compelling.

Amid this continental re-rating, 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 matured into a cornerstone of European real estate. Its regulated alternative investment funds — many eligible under the Golden Visa programme — provide transparent, professionally managed access to both yield and residency.

Click here to access Portugal’s Golden Visa Investment Fund Index

“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 supports this momentum. Amanda Collison, Senior Analyst at Property Market Index, reports that Portugal recorded Europe’s strongest capital growth in luxury new developments in 2025, led by Lisbon, Comporta, the Algarve, and Porto.

Double-digit appreciation in prime areas such as Cascais underscores genuine 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 notes Europe’s structural advantages: older building stock, strict sustainability rules, and limited new construction — all drivers of future 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 Pathways

Portugal Pathways has supported hundreds of Golden Visa residency-by-investment applications and provides expert guidance through its professional supply chain network on luxury property, wealth management, and tax optimisation, including post-NHR tax regime planning, as well as private healthcare, IFICI tax incentive applications, money transfers and bespoke relocation solutions to enhance life and investments in Portugal.

About Portugal Investment Owners Club

The Portugal Investment Owners Club, or P Club for short, is a unique investor membership community designed for discerning individuals, families, and organisations committed to exploring and capitalising on life in Portugal and enjoying money-can't-buy experiences and exclusive events.

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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Disclaimer: The information on the Portugal Pathways and Portugal Investment Owners Club (P Club for short) websites and in email communications is for general informational purposes only and should not be construed as legal, tax, or financial advice. You should consult and check with a qualified professional advisor before relying on any information provided on this website or in email communications. As it relates to investments in Golden Visas or other wealth management solutions offered by regulated and professional advisors, it is important to note that past performance is no guarantee of future returns. Private equities can be highly illiquid and come with risk and should always be under professional independent advice. Golden Visa investments need to be held for 6 to 7 years to allow for permanent citizenship/passport in the EU.

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