Portugal's M&A Market Signals Strong Real Estate and Tourism Investment for H2 2025
A market analysis based on reports from Portugal's leading law firms indicates a positive outlook for the second half of 2025, with investment in the real estate and tourism sectors expected to lead a recovery in transactional activity. Despite a slowdown in the first semester, which saw the national mergers and acquisitions (M&A) market move over €4 billion, key industry figures are forecasting a rebound driven by sustained international interest and major infrastructure developments.
The initial six months of the year recorded 244 transactions valued at approximately €4.041 billion across M&A, Venture Capital, Private Equity, and Asset Acquisition, according to data from TTR Data. This represented a 23% decrease in the number of deals and a 38% drop in mobilized capital compared to the same period in 2024. However, law firms that advise on these transactions report a resilient market poised for growth.
Paula Gomes Freire, managing partner of Vieira de Almeida (VdA), which led in transaction value, described the firm's performance as very positive, noting double-digit growth compared to the previous year. Similarly, Inês Sequeira Mendes, managing partner at Abreu Advogados, characterized the first half as a period of consolidation, setting the stage for future activity.
Looking ahead, the real estate and tourism sectors have been identified as primary drivers for foreign investment. 'The real estate and tourism sectors will continue to be more attractive for foreign investment in Portugal, impulsionados pela forte procura e pelo interesse internacional sustentado,' stated Inês Sequeira Mendes. This sentiment is supported by a pipeline of significant public and private projects.
A key factor underpinning this optimism is the government's commitment to large-scale infrastructure projects. Plans for a new international airport in Alcochete, a third bridge over the Tagus River, and the development of a high-speed rail connection between Lisbon and Madrid are expected to create substantial opportunities. 'O governo anunciou planos para construir um novo aeroporto internacional em Alcochete, planos para a construção de uma terceira ponte sobre o rio Tejo e a criação de uma ligação ferroviária de alta velocidade entre Lisboa e Madrid,' Mendes added, emphasizing the strategic importance of these developments.
Mafalda Barreto, managing partner at Gómez-Acebo & Pombo, confirmed that despite a slowdown, investment intentions remain strong. 'Portugal continua a ser um destino atrativo para investidores internacionais interessados nos setores energético, imobiliário e tecnológico, o que tem permitido manter uma atividade constante no mercado de fusões e aquisições,' she noted. The firm observed that while some transactions were delayed, very few were cancelled.
The consensus points towards a dynamic second semester. Law firm leaders anticipate the conclusion of several major transactions that have been pending. The energy sector, particularly renewables, along with technology and financial services, are also expected to see increased activity. Fernando Antas da Cunha, managing partner of Antas da Cunha Ecija, expressed his conviction that his firm would surpass its 2025 revenue targets, citing a historically stronger performance in the second half of the year.
The legal industry's perspective suggests that the foundational elements of the Portuguese economy are robust. The combination of strategic infrastructure investment and strong demand in key sectors like real estate provides a solid basis for the positive forecasts. This outlook is expected to materialize into a notable increase in M&A and other transactional activities before the year-end.
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