Portugal's Public Works Tenders Surge 18% to Nearly €7 Billion, Signaling Construction Boom

Public Works Tenders in Portugal Climb 18% to €6.97 Billion by July 2025 The Portuguese construction sector has seen a significant increase in activity durin...

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Public Works Tenders in Portugal Climb 18% to €6.97 Billion by July 2025

The Portuguese construction sector has seen a significant increase in activity during the first seven months of 2025, with the total value of promoted public works tenders reaching €6.971 billion. This figure represents an 18% increase compared to the same period in the previous year, amounting to an absolute growth of €1.058 billion. The data was released this Monday by the Association of Industrialists of Civil Construction and Public Works (AICCOPN), signaling robust government and municipal investment in infrastructure.

The analysis provided by AICCOPN offers a detailed look into the public procurement landscape. The source of this data is the association's monitoring of public works tenders and contracts, which serves as a primary indicator for the health of the national construction industry. The methodology involves tracking all tenders and contracts registered on the official government procurement platform, Portal Base, providing a comprehensive overview of public investment trends.

The most significant numerical finding is the sharp rise in the value of contracts that have been formally celebrated and awarded. Through the end of July, celebrated contracts resulting from public tenders totaled €2.835 billion. This represents a remarkable 61% year-over-year growth, indicating that a large volume of projects is moving from the tendering phase to active development. This acceleration in contract awards suggests that administrative processes are keeping pace with the increase in tenders, translating into tangible work for construction firms.

While the report does not provide a detailed geographic breakdown, the increase in public works is a national trend that affects various municipalities and regions. These projects typically encompass a wide range of infrastructure, from transportation and sanitation to public buildings and urban regeneration, all of which have a direct impact on local economies and property markets. The time period comparison shows a consistent and strong positive trend throughout the first seven months of the year.

The data also reveals a shift in the types of procurement being used. Contracts awarded through less competitive methods, such as Direct Award (Ajuste Direto) and Prior Consultation (Consulta Prévia), saw a year-over-year decrease of 8%. This suggests a move towards more transparent and open public tendering processes for awarding contracts. Despite this small decline in specific procurement types, the overall market momentum remains strong.

When all procurement methods are combined, the total value of all celebrated public works contracts registered on Portal Base by the end of July was €3.520 billion. This consolidated figure confirms the significant expansion of the sector, showing a 53% increase compared to the total value of contracts celebrated in the first seven months of 2024. Industry experts view this sustained growth as a positive sign for the Portuguese economy, reflecting increased investment capacity from public entities.

The AICCOPN report provides a clear statistical basis for the positive outlook in the construction sector. The substantial increase in both tendered and awarded contracts points to a period of sustained activity and development in Portugal's public infrastructure, which is expected to continue in the coming months. No immediate government response to the data has been issued, but the figures align with stated public investment goals.

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