The two largest cities in the country, Lisbon and Porto, remain competitive in the European context with regard to the retail sector. However, Porto stands out in terms of prime rents, being the most competitive destination in Europe for setting up shops.

These conclusions are part of the pan-European study "European Retail City Profiles", presented by JLL, which analyses 16 strategic cities on Europe's shopping route. With the aim of supporting retailers in defining their expansion plans, the report profiles each of these destinations in terms of retail locations, economic indicators, operational performance and demand dynamics. The cities analysed were: Antwerp, Barcelona, ​​Berlin, Brussels, Dublin, Düsseldorf, Frankfurt, Hamburg, Lisbon, London, Madrid, Milan, Munich, Paris, Porto and Warsaw.

Prime rents

Regarding prime rents, Porto shows a value of 1,020 euros per square meter (euros/m2) annually, the lowest rent of all 16 cities analysed. This value, found for Rua de Santa Catarina, is between 38% and 75% below the rents practiced in most European destinations, which range from 1,650 euros/m2 annually in Brussels to 4,090 euros/m2 annually in Munich.

International retailers have been attracted to the city of Porto for several reasons, not only because of the competitiveness of rents, but also because of the strong tourism dynamism (with 7.4 million visitors in 2024), the increase in foreign residents and the expanding consumer base (with retail sales estimated at €11 billion this year and growing 3.8% annually until 2029), as highlighted by Andreia Almeida, Head of Research at JLL, in a statement: “Porto is poised to establish itself as a key retail destination, driven by robust tourism, a growing metropolitan population and a city that has benefited from strong urban regeneration”.

The spokesperson adds that “retailers are capitalizing on this environment and, with rents that are quite competitive compared to their European counterparts, Porto is attracting more and more foreign retailers, alongside the various national retailers already present in the city,” also highlighting the “growing demand for prime locations such as Rua de Santa Catarina or the Ribeira and Avenida dos Aliados areas, which have seen strong growth in demand and occupancy of commercial spaces.”

“For the coming years, there is a prospect of more international brands entering the market, including operators already present in Lisbon seeking to expand operations to the North, as well as the strengthening of national brands. This movement should intensify competition for quality spaces, decrease availability, and generate an upward trend in rents in the long term,” concludes Andreia Almeida.