New Housing Construction Licenses Increase 22.2% Through July, AICCOPN Reports
The number of licensed dwellings in new constructions in Portugal rose by 22.2% between January and July of this year compared to the same period in 2024, totaling 24,016 new homes. During this same timeframe, new credit for housing granted by financial institutions reached €13.035 billion, an increase of 42.3% year-over-year. These figures are part of the latest Housing Statistical Synthesis published by the Association of Civil Construction and Public Works Industrialists (AICCOPN), providing a detailed snapshot of the nation's construction and real estate landscape.
The data, which synthesizes information from various official sources including the National Statistics Institute (INE), indicates a continued expansion in the residential sector. The total number of licenses issued for the construction and rehabilitation of residential buildings saw an 11% homologous increase, with 12,044 licenses granted in the first seven months of the year. This growth in licensing and financing points towards a robust pipeline of new housing supply intended to meet persistent market demand.
In contrast to the growth in residential licensing, the consumption of cement in the national market, a key barometer for ongoing construction activity, registered a slight decline. The 2.363 million tons consumed represent a 1.5% decrease compared to the same period in the previous year. This divergence may suggest a lag between the approval of new projects and the commencement of physical construction work on the ground.
On the financial front, market conditions for homebuyers have become more favorable. The average interest rate on new housing loans stood at 3.39% in July, marking a significant 110-basis-point reduction from July 2024. This easing of borrowing costs has occurred alongside a notable appreciation in property values. The median value used for bank appraisals rose by 18.7% in July on a year-over-year basis. This national average was driven by a sharp 24% increase in the valuation of apartments and a 10.4% rise in the value of single-family homes, or 'moradias'.
Need Expert Guidance?
Get personalized insights from verified real estate professionals, lawyers, architects, and more.
Manuel Reis Campos, President of AICCOPN, stated in a press release accompanying the report, "The sustained growth in licensing is a positive indicator of the sector's capacity to respond to the country's housing needs. However, we must also pay attention to execution indicators like cement consumption to ensure that approved projects translate into completed homes in a timely manner."
The report also provided a geographic breakdown, highlighting the exceptional performance of the Autonomous Region of Madeira. In the 12 months ending in July 2025, Madeira licensed 1,317 new homes, a 73% surge compared to the 763 units licensed in the prior 12-month period. This demonstrates a significant acceleration of development in the region. The profile of these new homes in Madeira is varied, with 27% being studios or one-bedroom apartments (T0 or T1), 41% two-bedroom (T2), 30% three-bedroom (T3), and the remaining 2% being four-bedroom or larger (T4+). This housing stock composition reflects a diverse demand in the island's market. Furthermore, bank appraisal values in Madeira showed a homologous increase of 16% in June 2025, reinforcing the trend of strong market appreciation.
Economists from a leading Portuguese bank noted that the national increase in housing credit is a sign of both resilient household demand and the banking sector's solid position. "The 42.3% growth in new mortgages is substantial. It reflects that despite higher property prices, buyers remain active, and banks are confident in the long-term value of these assets," one economist, who wished to remain anonymous, explained. The data from AICCOPN will be closely watched by policymakers and industry stakeholders as they continue to navigate the complexities of supply, demand, and affordability in the Portuguese housing market. The next statistical synthesis is expected to be released in the following quarter, providing further insights into the market's trajectory for the remainder of the year. Stay informed on Lisbon property market developments at realestate-lisbon.com.