Portugal's Real Estate Funds Hit 24-Year High, Surpassing €18.4 Billion

Portugal's Real Estate Funds Hit 24-Year High, Surpassing €18.4 Billion

Portugal's real estate investment funds have reached a historic milestone, with the total value of assets under management surging to a record-breaking €18.4 billion in the first half of 2025. Data released by the Portuguese Securities Market Commission (CMVM) confirms that this figure represents a 6.5% increase compared to the end of 2024, the most substantial half-year growth recorded in the sector in 24 years. This explosive growth underscores the immense confidence that institutional investors have in the national property market.

The CMVM report highlights that the last time a comparable growth rate was observed was in the first six months of 2001, positioning the current market performance as a significant event in the sector's recent history. The increase in assets under management is driven by a strong inflow of capital into various types of real estate funds, including open-end, closed-end, and the increasingly popular collective investment societies (SICAFIs and SIGIs), which function similarly to international Real Estate Investment Trusts (REITs).

This influx of capital is being deployed across a diverse range of real estate assets, including prime office space in Lisbon, logistics and industrial facilities responding to e-commerce growth, and large-scale residential developments. The consistent demand for property, coupled with attractive yield potential, has made these regulated funds a preferred vehicle for both domestic and international investors seeking exposure to the Portuguese market.

Inês Tavares, a fictional fund manager at a major Portuguese asset management firm, commented on the findings: 'The CMVM's data is not surprising to those of us operating in the market daily. There is a substantial appetite for high-quality Portuguese real estate assets. The legal framework for funds, particularly the SIGI regime, has provided a transparent and efficient structure that attracts significant foreign capital.' She added that the growth reflects a maturing market where investors are looking for professional management and diversified portfolios.

The record-breaking figures suggest that the trend of professionalization in Portugal's property market is accelerating. As more capital is channeled through these regulated investment vehicles, the market is likely to see an increase in larger, more sophisticated development projects. This institutional backing provides a stable foundation for the sector's continued expansion and its ability to meet the ongoing demand for modern, high-quality housing and commercial spaces across the country. Explore investment strategies and opportunities at realestate-lisbon.com.