Portugal Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)
Summary
The Portuguese construction industry is expected to grow by 2.5% in 2025, supported by growth in the building permits and export activities, coupled with an investment in transport and energy projects. According to the Instituto Nacional de Estatística (INE), the total number of building permits issued in the country grew by 7.6% in 2024. Preceded by the total number of building permits issued in the country falling by an annual decline of 5% in 2023. According to the Bank of Portugal, foreign direct investment (FDI) transactions rose to EUR13.2 billion ($14.4 billion) in 2024, marking a growth of 18.9% compared to the EUR11.1 billion ($12.1 billion) recorded in 2023. However, the residential construction sector is anticipated to experience a slowdown in growth in the short term due to high construction costs and elevated housing prices, which are expected to exert downward pressure on the construction sector.
The construction industry’s output is expected to register an annual average growth of 1.7% between 2026 and 2029, supported by government investments in transport and energy infrastructure projects, coupled with the government’s Recovery and Resilience Plans (RRP). For instance, in December 2024, the country received the fifth payment of EUR2.9 billion ($3.2 billion) as a part of the European Union’s EUR22.2 billion ($24.2 billion) Recovery and Resilience Plan (RRP) which was announced in October 2023 for the upgrade and development of transport and energy infrastructure projects in the country. The funding will be used for expanding metro networks in Lisbon and Porto and a bus rapid transit line in Braga, for improving residential energy efficiency, for renewable hydrogen production capacities and the installation of 15,000 electric vehicle charging stations
GlobalData’s Construction in Portugal - Key Trends and Opportunities to 2029 (H1 2025) report provides detailed market analysis, information and insights into the Portuguese construction industry, including -
- The Portuguese construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Portuguese construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
This report provides a comprehensive analysis of the construction industry in Portugal. It provides -
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Portugal, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using GlobalData's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Context
- 3.1 Economic Performance
- 3.2 Political Environment and Policy
- 3.3 Demographics
- 3.4 Risk Profile
- 4 Construction Outlook
- 4.1 All Construction
- Outlook
- Latest news and developments
- Construction Projects Momentum Index
- 4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
- 5 Key Industry Participants
- 5.1 Contractors
- 5.2 Consultants
- 6 Construction Market Data
- 7 Appendix
- 7.1 What is this Report About?
- 7.2 Definitions
- 7.3 CRI Methodology
- 8 About GlobalData
- 9 Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: Portugal, Key Economic Indicators
- Table 3: Portugal, Commercial Construction Output by Project Type (Real % Change), 2020–29
- Table 4: Portugal, Top Commercial Construction Projects by Value
- Table 5: Portugal, Industrial Construction Output by Project Type (Real % Change), 2020–29
- Table 6: Portugal, Top Industrial Construction Projects by Value
- Table 7: Portugal, Infrastructure Construction Output by Project Type (Real % Change), 2020-29
- Table 8: Portugal, Top Infrastructure Construction Projects by Value
- Table 9: Portugal, Energy and Utilities Construction Output by Project Type (Real % Change), 2020-29
- Table 10: Portugal, Top Energy and Utilities Construction Projects by Value
- Table 11: Portugal, Institutional Construction Output by Project Type (Real % Change), 2020-29
- Table 12: Portugal, Top Institutional Construction Projects by Value
- Table 13: Portugal, Residential Construction Output by Project Type (Real % Change), 2020-29
- Table 14: Portugal, Top Residential Construction Projects by Value
- Table 15: Portugal, Key Contractors
- Table 16: Portugal, Key Consultants
- Table 17: Portugal, Construction Output Value (Real, $ Million)
- Table 18: Portugal, Construction Output Value (Nominal, EUR Million)
- Table 19: GlobalData Construction Market Definitions
- Table 20: Risk Dimensions
- Table 21: Ratings, Scores and Definitions
- List of Figures
- Figure 1: Western Europe, Construction Output (Real % Change), 2023–29
- Figure 2: Portugal, Construction Output by Sector (Real % Change), 2023–25 and 2026–29
- Figure 3: Portugal, Risk Summary
- Figure 4: Portugal, Risk Regional Comparison
- Figure 5: Portugal, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020–29
- Figure 6: Portugal, Construction Output Value, by Sector (Real, $ Million), 2020–29
- Figure 7: Portugal, Construction Value Add (EUR Million, 2021 Constant Prices)
- Figure 8: Portugal, Gross Fixed Capital Formation (EUR Million, 2020 Constant Prices)
- Figure 9: Portugal, Total Number of Building Permits Issued
- Figure 10: Portugal, Construction Projects Momentum Index
- Figure 11: Western Europe, Construction Projects Momentum Index
- Figure 12: Portugal, Commercial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 13: Portugal, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 14: Portugal, Total Tourists Spending Nights in the Accommodation Establishments (in Number of Tourists)
- Figure 15: Portugal, Wholesale and Retail Trade, Repair of Motor Vehicles and Motorcycles Accommodation and Food Service Activities Value Add (EUR Million, 2021 Chained Prices)
- Figure 16: Portugal, Industrial Construction Output by Project Type (Real, $ Million), 2020–29
- Figure 17: Portugal, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 18: Portugal, Total Export Value (EUR Million)
- Figure 19: Portugal, Industrial Value Add (EUR Million, 2021 Constant Prices)
- Figure 20: Portugal, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 21: Portugal, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 22: Portugal, Transportation Value Add (EUR Million, 2021 Constant Prices)
- Figure 23: Portugal, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 24: Portugal, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 25: Portugal, Energy, Water Supply and Sewerage Value Add (EUR Million, 2021 Chained Prices)
- Figure 26: Portugal, Information and Communication Value Add (EUR Million, 2021 Chain Linked Volumes)
- Figure 27: Portugal, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 28: Portugal, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 29: Portugal, Education Value Add (EUR Million, 2021 Chain Linked Volumes)
- Figure 30: Portugal, Residential Construction Output by Project Type (Real, $ Million), 2020-29
- Figure 31: Portugal, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 32: Portugal, Housing Price Index (2015=100)
- Figure 33: Portugal, Residential Building Permits Issued (Unit, Number)
- Figure 34: Portugal, Real Estate Value Add (EUR Million, 2021 Constant Prices)
- Figure 35: Portugal, New Housing construction cost index
- Figure 36: Portugal, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 37: Portugal, Headquarters of Key Consultants (% of Total Project Pipeline)
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