Portugal: Main Trends Expected In The Real Estate Sector

Last Updated: 3 March 2016
Article by PLMJ Team

Last year was a historic one for the real estate sector in Portugal, as demonstrated by results without precedent in recent years: around EUR 2 billion of investment in the sector, most of it from international investors. 2016 should be no different and it is estimated that almost half that amount will be invested in the Portuguese market by the end of the first six months of the year.

We believe Portuguese and foreign investors have regained their confidence in the Portuguese market and interest as demonstrated by the interest shown at the main international real estate and tourism fairs. We would also highlight the hefty investments made by funds and other institutional investors, in particular, those coming from the United States, Spain, Germany and Brazil.

In contrast, 2015 was a negative year for the public works sector, with the downturn in the sector becoming (even) worse. The sector has survived mostly on private works and investments made by private investors, in particular, in the urban rehabilitation sector, which has been enjoying a strong growth of around 20% per year, although its global share still remains modest.

In any event, we believe this trend and focus on urban rehabilitation will continue in 2016 and that the volume of investments and works focused on rehabilitation of the buildings will continue to grow by two digits.

Due to the optimism that characterised 2015, this year is being welcomed with some enthusiasm., even that there is some apprehension due to uncertainty of how the current economic situation will evolve, in particular, the possible need for extraordinary measures to balance public finances, which has the potential to negatively affect investor's confidence.

In this context, we would highlight the following trends in the real estate market in Portugal for 2016:


The trend of rehabilitating the historic centres as seen over recent years should continue, seeking the regeneration and revitalisation of the cities. By way of example, we refer to the revitalisation of Lisbon's Baixa / Chiado area as well as along the city's riverfront, with countless deals and projects in the pipeline.

The expectation is that rehabilitation works will spread progressively across the board and not simply be restricted to the luxury sector (i.e. boutique hotels and prime residential properties). Other segments are also expected to benefit, including an increase in the supply of hotels and offices in the centres of Lisbon and Oporto, with the conclusion of several rehabilitation / construction projects of office buildings.

The position taken by the current government seems to indicate this will be the case. It has undertaken rehabilitation as a priority and has also announced the intention to create a National Urban Rehabilitation Fund (Fundo Nacional de Reabilitação Urbana – "FNRU"), which will use funds from the Portugal 2020 operational programmes. The ultimate aim of the FNRU is to seek to increase the supply of residential properties in city centres in order to bring greater dynamism to the letting market, with a particular focus on creating solutions for the middle segment of the market.


In order to respond to the growing demand for Portugal as a tourist destination, there has been an increase in the supply of tourism developments and local accommodation (apartments or houses available for rental to tourists). This includes dozens of new hotels, at the acquisition, licensing or construction stage, with a number of international hotel chains actively seeking to open hotels in Portugal, mostly, in Lisbon.

We would also highlight the trend, which is expected to continue, of increasing supply of local accommodation. In particular, the recent phenomenon of Portuguese investors who acquire properties in historic neighbourhoods in the main cities of the country, rehabilitate them, and then rent them to tourists.


It is expected that the level of interest in the special tax scheme for non-habitual residents will be maintained, in particular, by the European Union citizens seeking a more favourable tax treatment and the ability to enjoy their retirement in a country with a lower cost of living than their country of origin. This means there will continue to be a strong level of interest in Portugal, particularly from investors from France and Belgium.

Interest in Golden Visas fell in 2014, but 2015 saw an improvement on the 2013 numbers. In light of the most recent legislative changes, it is expected that once the procedure for processing applications by the Foreigners and Border's Department (Serviço de Estrangeiros e Fronteiras) has stabilised, there will be a renewed interest on the part of investors over the course of this year. Particular interest is expected from Brazilian investors whose volume of investment in the Portuguese real estate market has increased and is expected to continue.

Considering the above, 2016 has the potential to match or even surpass 2015 results.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions