Real Estate and Construction Sectors Drive New Company Formation in Portugal
An industry report analyzing business creation in Portugal has revealed that the real estate and construction sectors are the primary drivers of growth in 2025. Data published by Informa D&B, based on official records from the Ministry of Justice up to August 4, shows a significant increase in the number of new companies being established in these two key areas of the economy.
The analysis of construction costs and material prices indicates a stable environment that is encouraging new ventures. The total number of new companies created in Portugal by the end of July reached 32,422, a modest increase of 0.8% compared to the same period in the previous year. However, the growth within specific sectors was much more pronounced. Real Estate Activities saw a 22% increase, corresponding to 697 new company registrations, while the Construction sector grew by 11%, with 410 new firms. Both sectors have now experienced nine consecutive months of growth.
The labor market conditions in the construction industry have been a contributing factor, with a steady supply of skilled workers supporting new projects. The report highlights that within these sectors, the sub-sectors of 'Purchase and sale of real estate' and 'Construction of residential and non-residential buildings' were particularly strong. This indicates a healthy level of activity in both property transactions and new development projects.
Technology adoption in construction processes has also played a role, with new companies leveraging innovation to improve efficiency. In contrast to the growth in property-related sectors, the Transport sector saw a 24% decline in new company formations, and the Retail sector decreased by 10%. These figures suggest a sectoral shift in the Portuguese economy, with real estate and construction taking a leading role.
Regulatory changes affecting construction practices have been manageable, allowing for continued investment and growth. Geographically, the West and Tejo Valley region recorded the highest rate of new business creation, with a 9.3% increase. The North and Center regions also saw positive growth. However, the Greater Lisbon area and the Algarve experienced slight declines in overall company formations, largely attributed to the sharp drop in the Transport sector.
The quality standards and building code updates in Portugal are in line with European norms, providing a secure regulatory framework for investors. Despite the overall negative figures for Lisbon and the Algarve, the strong performance of the real estate and construction sectors within these regions remains a positive indicator for property investors.
The environmental regulations and sustainability requirements are also shaping the industry, with many new companies focusing on green building practices. The report also noted a positive trend in business closures and insolvencies, with fewer companies closing down compared to the previous year, suggesting improved business resilience across the economy.
Construction financing and project funding trends remain favorable, supporting the creation of new enterprises. The future construction industry outlook appears positive, with the continued formation of new companies suggesting a pipeline of future projects and sustained market activity.
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