Portugal Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

Portugal Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

Summary

The construction industry in Portugal is expected to expand by 1.2% in real terms in 2022, following an annual growth of 3.8% in 2021. The slowdown in growth is attributed to headwinds caused by rising inflation, rising construction costs, lower export volumes, and the fallout from the Russia-Ukraine war. Additionally, there was a huge drop in non-residential building permits of 13.6% in the first five months of 2022, compared to the same period of 2021. According to the Instituto Nacional de Estatística (INE), the new housing construction cost index rose by 11.1% year on year (YoY) in the first five months of 2022, driven by a Y-o-Y rise in the prices of both materials (14.9%) and labor (5.7%). In addition, consumer prices have been rising steadily since the beginning of this year, with CPI inflation standing at a near 30-year-high of 9.1% in July 2022. Rising inflation is expected to weigh on consumer spending, thereby impacting investment decisions in the housing and commercial sectors. Moreover, rising living costs have increased upward pressure on wages in the construction industry, fuelling further increases in construction costs on the labor and logistics side over the coming quarters.

GlobalData expects the construction industry in Portugal to register annual growth in the range of 1.3-1.8% from 2023 to 2026, buoyed by the government’s efforts to improve and decarbonize the country’s transport infrastructure. The industry’s growth over the forecast period will also be supported by investments as part of the National Energy and Climate Plan for 2021-30, which aims to promote the development of the renewable energy sector, increase interconnectivity in energy markets, and increase investment in research and innovation activities. In June 2022, the Prime Minister announced that the country will invest EUR7.6 billion ($8.5 billion) to support agro-based industries and the health sector, as well as to support the construction of new hydrogen and lithium battery plants and energy-efficient buildings.

The report provides detailed market analysis, information and insights into the Portuguese construction industry, including -

• The Portuguese construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Portuguese construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline

Scope

This report provides a comprehensive analysis of the construction industry in Portugal. It provides -

• Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in Portugal, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.