Portugal’s construction sector is witnessing a boom, exceeding a production value of €20.1 billion in 2023. This marks a significant 7.5% increase compared to 2022. While this sounds impressive, it’s important to delve deeper.
Some of this growth can be attributed to rising prices, with a real growth rate of 3.4% offering a more nuanced perspective. Nonetheless, the sector is experiencing a clear upward trend. This positive momentum is evident across various segments. Civil engineering leads the pack with a 5% increase, followed by residential construction (3.0%) and non-residential construction (0.7%).
The good news extends beyond production value. The number of jobs in the sector has also seen a healthy rise of 6.4%, reaching 344,000 workers in 2023. This translates to nearly 7% of Portugal’s total workforce finding employment in construction.
The industry is also experiencing a growth in the number of companies. By April 2024, there were over 66,300 construction companies registered in Portugal, reflecting a surge of 4,400 compared to the same period in 2023. This growth is further supported by a rise in the number of companies with contractor’s certificates (7.8%) and construction permits (6.4%).
Lisbon and Porto remain the construction powerhouses, concentrating a significant portion of companies with permits (over 36%) and contractor’s certificates (30%).
Several factors are likely driving this construction boom. Increased investment in infrastructure, tourism, and housing projects are fueling demand. The sector’s resilience during the COVID-19 pandemic further highlights its critical role in the Portuguese economy. Additionally, the government’s National Housing Strategy aims to address housing shortages and promote sustainable construction practices.
However, challenges loom on the horizon. The ongoing energy crisis and rising material costs could potentially hamper the sector’s growth.