Public Works Tenders in Portugal Skyrocket 28% to €7.9 Billion Through August
The Portuguese public works sector has demonstrated remarkable growth in 2025, with the total value of promoted tenders reaching €7.915 billion in the first eight months of the year. This announcement comes from the latest Public Works Barometer issued by AICCOPN, the Association of Civil Construction and Public Works Industrialists. The figure represents a significant 28% increase over the amount registered during the same period in 2024, signaling a strong injection of capital into the nation's infrastructure and public building projects. The data reflects a consistent monthly average of approximately one billion euros in new tenders being brought to the market, providing a robust pipeline for the construction industry.
This surge in promoted projects underscores a concerted effort to advance public infrastructure, which is a critical driver for the broader economy and real estate sector. The scope of these tenders typically includes a wide range of projects, from transportation and utilities to public buildings and urban regeneration, all of which contribute to the long-term value and attractiveness of the regions they serve. The substantial year-on-year increase points to a renewed confidence and capacity for public investment, which is closely watched by developers and investors as an indicator of future growth and development opportunities across Portugal.
While the volume of new tenders is a strong positive indicator, the report also provides a detailed look at the execution phase of these projects. By the end of August 2025, the total value of public works contracts that were formally celebrated and awarded through the public tender process amounted to €3.183 billion. This figure itself is a notable achievement, representing a 53% positive variation when compared to the contracts awarded in the same timeframe last year. The growth in celebrated contracts shows that the industry is not only seeing more projects being proposed but is also successfully moving them from the bidding stage to formal agreement.
However, the AICCOPN barometer highlights a significant differential between the value of projects put out to tender and those that have been officially awarded. An accumulated gap of €4.732 billion has been identified since the start of the year, representing the value of launched tenders that have not yet resulted in a celebrated contract. This lag can be attributed to various factors, including the complexity of the procurement process, administrative timelines, and evaluation periods. Closing this gap is crucial for translating the potential of the tender pipeline into tangible construction activity on the ground.
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The data also distinguishes between procurement methods. For contracts awarded through non-tender modalities, such as direct awards or prior consultations, there was a slight contraction, with a recorded 2% decrease compared to the same period in the previous year. This suggests a stronger reliance on the formal public tendering process for commissioning major projects. When all procurement types are consolidated, the total value of public works contracts officially celebrated and registered on the national Base Portal reached €3.948 billion by the end of the eighth month, marking an overall year-on-year growth of 48% in awarded projects.
This sustained increase in both tendered and awarded public works provides a solid foundation for the construction sector's activity in the coming months and years. The significant public investment is expected to stimulate economic activity, create employment, and enhance infrastructure, which are all factors that positively influence the real estate market. The ongoing projects and the substantial pipeline of future works are set to reshape local landscapes and create new areas of opportunity for residential and commercial development.
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