Real Estate Market in Portugal

Investing in Portugal: Prospects for Growth and Opportunities

The Portuguese economy continues to show resilience and potential for growth within a challenging global context. According to the Bank of Portugal's Economic Bulletin (October 2024), gross domestic product (GDP) is expected to grow by 1.6% in 2024, before rising to 2.1% in 2025, then remaining at 2.2% in 2026. This growth is supported by improved financial conditions, greater external demand and a major boost in European Union funds.

Inflation has been slowing, with a rate of 2.6% forecast for 2024, approaching figures consistent with price stability in subsequent years. This reflects the economy's capacity to adapt to global dynamics, as well as the effectiveness of the economic policies implemented.

Dynamism in the construction and real estate sector

Portugal’s construction sector has demonstrated positive signs. In the first half of 2023, the construction production index rose by 5.5% year-on-year, with the civil engineering segment doing particularly well, with an increase of 8.2%. In addition to this positive dynamic, there was a 3.1% increase regarding employment in the sector, boosting its importance to the Portuguese economy.

As for the real estate market, demand for housing remains robust, chiefly in the high-end and luxury segments. Limited supply, influenced by factors such as licensing delays and credit restrictions on construction, continues to underpin the appreciation of property assets. Lisbon, in particular, is still one of the most attractive cities to live in, regularly featuring in international quality-of-life rankings.

A favourable environment for investors

Portugal offers a stable and attractive environment for investors, boasting economic policies that favour innovation and sustainability. Significant amounts of European funds and improved financial conditions have created opportunities in various sectors, from construction and real estate to emerging technologies.

In short, investing in Portugal represents a strategic opportunity in an expanding market with solid economic foundations and a favourable environment for foreign investment.