The Portuguese real estate market enters 2025 with a mix of optimism and challenges. Despite global volatility, key market players believe this will be a year of growth and adaptation, driven by strong investment and the urgent need to increase housing supply.
According to a recent article in Público, based on the Perspectives for 2025 conference organized by Vida Imobiliária in partnership with ISEG, 87% of industry experts are starting the year more optimistic than in 2024. However, concerns such as the housing crisis, tax burden, and rising construction costs remain high on the agenda.
Construction Costs and the Role of Efficiency
For José Rui Meneses e Castro, co-CEO of MAP Group, construction costs will continue to rise, but the key lies in adaptation and innovation: “We will have to build luxury homes with new features because clients will demand them. At the same time, we need to reduce costs in the more affordable segment, which will only be possible through new, more efficient construction methods.”
The need to accelerate industrialized and modular construction, as well as to attract more skilled workers to the sector, is critical to ensuring a balance between supply and demand.
Investing in Growth
Despite uncertainties, the market remains dynamic. Commercial property investment in Portugal reached €2.3 billion in 2024, marking a 36% increase from the previous year, with the retail and residential sectors leading the way.
Challenges and Opportunities
The sector continues to grapple with the implementation of the Recovery and Resilience Plan (PRR) and the urgent need to renovate buildings to comply with new EU energy efficiency standards. A drop in interest rates could be a positive factor, but uncertainty in global economic policy remains a key consideration.
At MAP Group, we believe 2025 will be a year of transformation—where adaptation, innovation, and sustainable investment will shape the future of the real estate sector.
Read the full article in Jornal Público.
