Portugal Construction Market 2025 Market Trends and 2033 Forecasts: Exploring Growth Potential

Portugal Construction Market

The size of the Portugal Construction Market was valued at USD 11.6 Billion in 2023 and is projected to reach USD 13.79 Billion by 2032, with an expected CAGR of 2.5% during the forecast period. The Portugal Construction Market emphasizes the expansion and advancement of the nation's construction sector, which includes residential, commercial, industrial, and infrastructure initiatives. Fueled by elements like urbanization, a rising need for housing, and major investments in public infrastructure, the market is seeing strong growth. The government's emphasis on upgrading transportation systems, such as roads, bridges, and railways, alongside advancements in energy efficiency, sustainable buildings, and renewable energy facilities, is driving the need for construction services. In addition, the market benefits from Portugal's expanding tourism industry, which stimulates commercial and hospitality development, along with the nation's emphasis on urban renewal and the modernization of current structures. The emergence of sustainable building methods and the incorporation of innovative technologies, including Building Information Modeling (BIM), intelligent buildings, and environmentally friendly materials, are additionally influencing the industry. With Portugal's ongoing economic recovery, supported by EU funding for infrastructure and innovation, the construction sector is projected to sustain its positive growth in the next few years, presenting substantial opportunities in both public and private projects.

Portugal Construction Market Concentration & Characteristics

The Portuguese construction market is highly fragmented, with a large number of small and medium-sized enterprises (SMEs) competing for market share. The top 10 construction companies in Portugal account for around 30% of the market share, with the remaining 70% being shared among a large number of smaller companies.

The Portuguese construction industry is characterized by a high level of innovation, with a number of companies investing in research and development. This is helping to drive down construction costs and improve the quality of construction projects. The industry is also characterized by a well-educated workforce, which is essential for the adoption of new technologies.

The Portuguese construction industry is subject to a number of regulations, including those related to safety, environmental protection, and energy efficiency. These regulations are designed to protect the public and the environment, and to ensure that construction projects are carried out in a sustainable manner.

Portugal Construction Market Trends

The Portuguese construction market is expected to continue to grow over the next few years, fueled by the country's strong economic growth and increasing investment in infrastructure and real estate development.

One of the key trends in the Portuguese construction market is the increasing use of prefabricated and modular construction techniques. This is helping to reduce construction costs and timelines, and is also making it possible to construct more complex and sustainable buildings.

Another key trend is the increasing use of digital technologies in the construction process. This is helping to improve efficiency and productivity, and is also making it possible to track and manage construction projects more effectively.

Key Region and Segment to Dominate the Market

The Portuguese construction market is expected to be dominated by the private sector over the next few years, as there is a high demand for new housing and commercial development. The public sector is also expected to play a significant role, as there are a number of major infrastructure projects planned in the coming years.

In terms of construction segments, the residential segment is expected to be the largest over the next few years, as there is a high demand for new housing. The commercial segment is also expected to grow, as there is a need for new office space, retail space, and hospitality facilities.

Portugal Construction Market Product Insights Report Coverage & Deliverables

This report provides a comprehensive overview of the Portuguese construction market, including key market insights and analysis. The report covers the following topics:

• Market overview
• Market size and growth
• Market drivers and challenges
• Key market trends
• Key segments
• Competitive landscape
• Key players
• SWOT analysis
• Future outlook

Portugal Construction Market Analysis

The Portuguese construction market is expected to grow by 2.5% over the next five years, reaching a value of €14.5 billion by 2027. This growth is being driven by a number of factors, including:

• The country's strong economic growth
• Increasing investment in infrastructure and real estate development
• A growing population
• A shortage of housing

The residential sector is expected to be the largest contributor to growth over the next five years, as there is a high demand for new housing. The commercial sector is also expected to grow, as there is a need for new office space, retail space, and hospitality facilities.

Portugal Construction Market Regional Insights

The Portuguese construction market is divided into five regions:

• North
• Centre
• Lisbon
• Alentejo
• Algarve

The Lisbon region is the largest construction market in Portugal, followed by the North and Centre regions. The Alentejo and Algarve regions are the smallest construction markets in Portugal.

The Lisbon region is expected to continue to be the largest construction market in Portugal over the next five years, as it is home to the country's capital city and largest metropolitan area. The North and Centre regions are also expected to experience growth, as there is a high demand for new housing and commercial development in these regions.

Driving Forces: What's Propelling the Portugal Construction Market

The Portuguese construction market is being driven by a number of factors, including:

• The country's strong economic growth
• Increasing investment in infrastructure and real estate development
• A growing population
• A shortage of housing

The Portuguese economy is expected to grow by 2.5% in 2023, according to the International Monetary Fund (IMF). This growth is being driven by a number of factors, including strong exports, increasing tourism, and a recovering domestic demand.

The Portuguese government is also investing heavily in infrastructure and real estate development. The government has pledged to invest €10 billion in infrastructure projects over the next five years, and has also introduced a number of measures to encourage investment in real estate development.

The Portuguese population is also growing, which is creating a demand for new housing. The population of Portugal is expected to reach 10.3 million by 2027, according to the latest United Nations projections.

There is also a shortage of housing in Portugal, which is driving up prices and making it difficult for people to find affordable housing. The shortage of housing is being caused by a number of factors, including the high cost of construction, the lack of available land, and the slow pace of new housing development.

Challenges and Restraints in Portugal Construction Market

The Portuguese construction market is facing a number of challenges and restraints, including:

• The high cost of construction
• The lack of available land
• The slow pace of new housing development
• The shortage of skilled labor
• The regulatory environment

The high cost of construction is a major challenge for the Portuguese construction market. The cost of construction in Portugal is higher than in many other European countries, which is making it difficult for developers to build new homes and businesses.

The lack of available land is another major challenge for the Portuguese construction market. The amount of land available for development in Portugal is limited, which is driving up the cost of land and making it difficult to build new homes and businesses.

The slow pace of new housing development is also a challenge for the Portuguese construction market. The process of obtaining permits and approvals for new housing development is slow and bureaucratic, which is delaying the construction of new homes and businesses.

The shortage of skilled labor is another challenge for the Portuguese construction market. The Portuguese construction industry is facing a shortage of skilled workers, which is driving up wages and making it difficult for developers to find qualified workers.

The regulatory environment is also a challenge for the Portuguese construction market. The Portuguese construction industry is subject to a number of regulations, which can add to the cost of construction and slow down the pace of new development.

Emerging Trends in Portugal Construction Market

There are a number of emerging trends in the Portuguese construction market, including:

• The use of prefabricated and modular construction techniques
• The increasing use of digital technologies in the construction process
• The growing focus on sustainability

The use of prefabricated and modular construction techniques is growing in popularity in Portugal. These techniques can help to reduce construction costs and timelines, and can also improve the quality of construction.

The increasing use of digital technologies in the construction process is another emerging trend in Portugal. These technologies can help to improve efficiency and productivity, and can also make it possible to track and manage construction projects more effectively.

The growing focus on sustainability is also a key trend in the Portuguese construction market. Developers are increasingly adopting sustainable construction practices, such as using recycled materials and energy-efficient technologies.

Portugal Construction Industry News

In March 2023, Hilti and Construction Robotics Company Canvas announced a strategic partnership. This collaboration brings together leaders in intelligent jobsite robotics. They all share the same belief that robotic tools will unleash previously unrealized potential and usher in a new era of productivity and safety for skilled tradespeople.

Leading Players in the Portugal Construction Market

The leading players in the Portuguese construction market include:

• Mota-Engil
• Sotecniica
• Eiffage
• Acciona
• Hilti group
• Arcadis

Portugal Construction Market Segmentation

• 1. Type
  • 1.1. Residential Construction
  • 1.2. Commercial Construction
    • 1.2.1. Sports Facilities Construction
    • 1.2.2. Hospitality Facilities Construction
    • 1.2.3. Retail Facilities Construction
    • 1.2.4. Office Buildings Construction
  • 1.3. Industrial Construction
  • 1.4. Infrastructure & Heavy Civil Construction
  • 1.5. Institutional Construction
    • 1.5.1. Healthcare Facilities Construction
    • 1.5.2. Educational Facilities Construction
  • 1.6. Mixed-Use Construction
  • 1.7. Specialized Construction
  • 1.8. Renovation/Remodeling Construction
  • 1.9. Environmental Construction
• 2. End-Use
  • 2.1. Private sector
  • 2.2. Public sector
• 3. Contracting Type
  • 3.1. General contracting
  • 3.2. Design-build contracting
  • 3.3. Construction management
• 4. Scale
  • 4.1. Mega project
  • 4.2. Major project
  • 4.3. Medium project
  • 4.4. Small project