The analyst expects the construction industry in Portugal to grow in real terms by 2.5% in 2025, supported by an increase in building permits and export activities, coupled with investments in the transport and energy projects. According to the Instituto Nacional de Estatística (INE), the total number of building permits issued in the country grew by 14% year-on-year (YoY) in the first five months of 2025, following by an overall annual growth of 8.6% in 2024. In January 2025, government announced tax measures specifically aimed at enhancing the competitiveness of companies and improving employee salaries, which will is likely to increase investment capacity in the construction industry.
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). The RRP plan consists of 83 investments and 32 reforms. For instance, in June 2025, the country received the sixth payment of EUR1.34 billion ($1.5 billion) as a part of the European Union’s EUR22.2 billion ($24.2 billion) Recovery and Resilience Plan (RRP) for the upgrade and development of healthcare, housing, including access to energy-efficient housing, social inclusion, critical digital infrastructure.
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). The RRP plan consists of 83 investments and 32 reforms. For instance, in June 2025, the country received the sixth payment of EUR1.34 billion ($1.5 billion) as a part of the European Union’s EUR22.2 billion ($24.2 billion) Recovery and Resilience Plan (RRP) for the upgrade and development of healthcare, housing, including access to energy-efficient housing, social inclusion, critical digital infrastructure.
The Construction in Portugal - Key Trends and Opportunities to 2029 (H2 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
