Real Estate Investment Funds in Portugal Reach Record €18.5 Billion
The value of assets under the management of real estate investment funds in Portugal reached €18.499 billion in the second quarter of 2025, marking a significant annual increase of 23.2%, according to the most recent data released by the Portuguese Securities Market Commission (CMVM). This figure represents one of the highest values on record, reflecting a robust and expanding market. The growth was also notable on a quarterly basis, with a 3.4% rise from the previous quarter.
This surge in assets is largely driven by the appreciation of property values, which directly impacts the portfolios of these funds. The CMVM report details that the bulk of this capital, approximately 98%, is managed by traditional real estate investment funds (FII) and special real estate investment funds (FEII). The investment focus remains predominantly on assets within the European Union, which include land, rehabilitation projects, and newly finished constructions. Total investment in these assets climbed to €21.9 billion by the end of June, a 28.2% increase year-over-year.
A particularly strong area of growth was in rehabilitation projects within the EU, where investment skyrocketed by 79.8% compared to the same period in 2024. This indicates a significant allocation of capital towards renovating and upgrading existing properties. The CMVM's analysis suggests that the growth is not only due to asset appreciation but also to an expansion in the number of market players. In the span of one year, the number of registered fund management entities in Portugal increased from 53 to 61, while the number of active funds grew from 273 to 323.
The regulatory environment has also fostered growth, with an increasing number of entities structuring as Collective Investment Companies (SIC), a vehicle known for its tax efficiencies. The business newspaper Expresso has reported on this trend, noting that prominent properties, such as the Lagoas Park office complex near Lisbon, have been restructured as SICs following major acquisitions by international investors like the British fund Henderson Park Capital Partners. The CMVM confirmed the launch of new SICs in July, including the Portugal Singular Realties fund, managed by Refundos.
The positive momentum continued into the third quarter, with the total assets under management rising to €18.526 billion in July. This sustained growth underscores the strong investor appetite for Portuguese real estate assets. The increase in the number of closed-ended funds, which do not permit continuous entry and exit of investors, suggests a long-term investment horizon among market participants. This stability is seen as a positive indicator for the market's future development.
Industry experts point to this trend as a sign of a maturing market, where sophisticated investment vehicles are becoming more prevalent. The ability of these funds to pool capital allows for larger and more ambitious projects, from residential developments to commercial renovations, contributing to the overall quality and supply of real estate in the country. The CMVM continues to monitor the sector closely, ensuring transparency and regulatory compliance as the market evolves.
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