Lisbon's Renovation Sector Surges by 54% as Property Owners Invest in Upgrades
A new statistical analysis from Querido Mudei a Casa Obras, a prominent brand within the Melom Obras group, has revealed a significant surge in Portugal's property renovation market. The data shows that between January and August 2025, investment in renovation projects in the Greater Lisbon area reached €4.5 million, marking a 54% increase compared to the same period in 2024.
The report, based on the company's extensive project data, indicates a nationwide trend of increased investment in property upgrades. The source of the data is internal metrics from Querido Mudei a Casa Obras, which tracks project budgets and completions across its network. This provides a granular view of homeowner and investor behavior in the current economic climate.
The numerical findings highlight Lisbon's dominant role in the national market. Beyond the capital's 54% growth, the Greater Porto region also recorded a strong performance with a 36% increase. Other areas showing significant activity include the Center of the country, with a 19% rise, and a combined average growth of 48% across the Alentejo, Algarve, and the Islands. These figures point to a broad-based recovery and expansion in the renovation sector.
Geographically, the highest demand for renovations is concentrated in Greater Lisbon, followed by the Margem Sul, Greater Porto, and the Central Zone. In terms of converting budget proposals into contracted work, Greater Lisbon leads with a notable 31% conversion rate, suggesting a high level of serious intent among property owners in the region. For more analysis of regional trends, see our geographic deep dives.
The analysis covers the period from January to August 2025, comparing it directly with 2024 to establish a clear year-over-year growth metric. This comparison provides a solid baseline for understanding the market's trajectory throughout the current year.
A breakdown of the market by segment shows that comprehensive, full rehabilitations account for the largest portion of projects, at 32%. More specific upgrades are also popular, with kitchen remodels making up 12% of jobs and bathroom renovations 9%. Apartments are the most frequently renovated property type (42%), with T3 (three-bedroom) layouts being the most common, indicating a focus on family-sized homes. This trend is vital for constructors to understand client needs.
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Vasco Magalhães, General Director of MELOM and Querido Mudei a Casa Obras, provided commentary on the statistical trends. “The renovation market is more active than ever,” he stated. “People are investing in improving the comfort and value of their properties, whether for personal use or as an investment. This growth is only possible with a quality service offering and a team of truly prepared professionals.”
The report suggests that this trend is in line with broader government and municipal goals favoring urban rehabilitation over new construction in dense city centers. The growth in renovations contributes to the modernization of existing housing stock and the revitalization of urban neighborhoods.
Historically, this surge can be seen as a continuation of a post-pandemic focus on home improvement, now amplified by a strong property market where upgrading an existing asset can yield significant returns. The drivers are twofold: homeowners seeking better living conditions and investors aiming to maximize rental yields or capital gains, a key topic in our market intelligence blog.
Given the current momentum, the report anticipates that the demand for renovation services will remain high for the remainder of the year. Future data releases will be watched closely to confirm if this high level of activity is sustained through the end of 2025.
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