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
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
The 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.
Scope
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
Reasons to Buy
- 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 the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
