Production in the construction sector rises 4.5% in Portugal.
- Redação Mudei e Agora
- 2 days ago
- 2 min read
Construction production in Portugal has regained momentum and is marking the start of 2026 with a significant signal for the entire real estate market. In November 2025, construction production rose by 4.5%, in a context where the Eurozone and the European Union registered a decline, reinforcing the idea that the Portuguese cycle has its own more positive dynamics.
This growth is closely associated with the combination of public works, urban rehabilitation, and private housing projects seeking to address an accumulated supply deficit. Years of underinvestment, bureaucracy, and high construction costs have created a structural shortage of housing, especially in large cities. The increase in production does not solve everything, but it indicates that the sector is reacting and gaining traction.
For real estate professionals, this movement is critical for two reasons. The first is the prospect of a gradual increase in available stock, which tends to alleviate pressure on sales and rental prices in the medium term. The second sign is confidence: banks, developers, and investors are once again moving forward with projects, even in an environment that remains demanding in terms of operational costs and margins.
Regionally, the new dynamic is concentrated in metropolitan areas and urban centers with higher demand, but it is also beginning to benefit medium-sized cities. In these markets, land costs are more accessible, and there is room to create products with a more balanced quality/price ratio. This opens opportunities for those working in land acquisition, local promotion, and intermediation of residential projects aimed at families and the middle class.
Another relevant point is the strategic repositioning of construction companies. After years focused on survival and risk management, many companies are beginning to adjust their portfolios, invest in partnerships, and seek niches of specialization, such as rehabilitation, energy efficiency, or modular construction. For mediators and consultants, understanding these internal movements is a competitive advantage in identifying partners for new ventures.
Despite the growth, the context remains fragile. The evolution of interest rates, the availability of skilled labor, and the stability of urban planning regulations will be crucial in determining whether this acceleration is sustainable or merely a momentary peak. Regulation will also play a central role: faster licensing, clear definition of indices, and fiscal predictability make the difference between a pipeline that materializes and one that remains only on paper.
On a macro level, Portugal also benefits from an attractive position for foreign capital, which continues to view the country as a relatively small but stable market with potential for appreciation. The strengthening of the construction sector aligns with this narrative: more projects, greater liquidity, and the capacity to absorb different investment profiles, from institutional funds to private investors seeking income-generating properties.
For those working in the field daily – consultants, mediators, appraisers, developers – the increase in production should be seen as an invitation to anticipate. Mapping areas with more new construction, monitoring licenses, understanding the most sought-after property types, and positioning oneself alongside developers becomes essential to capturing business when properties reach the market. In a context where supply is finally starting to react, those who are better informed will have an advantage.
Source: Vida Imobiliária – “Construction production rises 4.5% in Portugal and falls in the Eurozone”
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