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Portugal Construction Market Analysis

Report ID: GMI6268
Published Date: Jul 2023
Report Format: PDF

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Portugal Construction Market Analysis

Portugal Construction Market Size, By Type, 2021 – 2032, (USD Billion)

The residential construction market reached USD 2.5 billion revenue in 2022 and will register over 3% CAGR during the forecast period. Increased urbanization and population growth have spurred demand for new housing developments, especially in major cities and their outskirts. Government incentives and policies supporting the real estate sector, along with attractive mortgage rates, have encouraged private investments in residential projects.

For example, in November 2022, Santander Bank agreed to provide USD 51.3 million in financing to The Social Hub (TSH) for developing a 26,600-square-meter facility in Porto. In the heart of the city, TSH will provide a 13,467-sqm hotel and student housing complex with 305 rooms, co-working areas, dining establishments, event venues, gyms, and rooftop swimming pools.

Portugal Construction Market Share, By End-User, 2022

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The Portugal construction market from private sector segment accounted for 60% of revenue share and is set to surpass USD 9 billion by 2032. Real estate development is a key growth driver of the private sector segment in the market. Private developers engage in residential, commercial, and mixed-use projects to capitalize on the demand for properties, both for sale and rental purposes.

Additionally, the private sector responds to the demand for commercial and industrial spaces. Companies require offices, retail spaces, warehouses, factories, and other facilities for their operations. Private developers and investors capitalize on this demand by constructing commercial & industrial properties.

The Portugal construction market from general contracting segment recorded more than USD 4.5 billion revenue in 2022 and will reach USD 6 billion by 2032. General contractors play a crucial role in upholding quality and safety standards in construction projects. They possess project management expertise, which is highly valued in the construction industry. Their ability to oversee & coordinate complex projects, manage resources, and ensure timely & cost-effective project delivery makes them indispensable in the market.

Authors: Avinash Singh, Sunita Singh

Frequently Asked Questions (FAQ) :

The market size for construction in Portugal was reached USD 11.6 billion in 2022 and is set to witness over 2.5% CAGR from 2023 to 2032, due to the growing urbanization and the strong demand for residential, commercial, and infrastructure construction projects in the country.

Portugal residential construction market size surpassed USD 2.5 billion in 2022 and may record over 3% CAGR from 2023 to 2032, driven by the high demand for new housing developments, especially in major cities and their outskirts.

The private end-use segment held over 60% of the market share in 2022 and is set to surpass USD 9 billion by 2032, led by the growing focus of private developers to capitalize on residential, commercial, and mixed-use projects.

Some of the major companies operating in the market include Hilti group, Arcadis, Acciona, TPF, Pinto & Cruz, FDO Construções, Eiffage, Mota-engil, and Sotécnica.