Construction news in Portugal

Bodies of two workers buried at hotel construction site in Porto Covo found

Housing: it will only be possible to recover the 300,000 missing homes in 3 years, warns president of the Civil Construction and Public Works Industrial Association

Hurry: registration for AIMA construction course ends on July 5

Industrialized construction gains strength in Portugal, but the system continues to slow down scale

New modular construction law is a “trigger” for the sector and paves the way for public contracts

Wood in construction in Portugal: "There is a great urgency"

The use of wood as a building material in Portugal is being discussed, with experts highlighting the urgent need for its adoption.

Idealista23 Oct

Expresso da Manhã: nearly 100,000 immigrants are needed to resolve the housing crisis

Construction employment is 30% below 2008 levels and there is a shortage of around 90,000 workers in the sector. There is an in-depth report on the topic in the latest edition of Expresso, and we speak with the newspaper's executive editor, João Silvestre, about the matter.

Wooden construction grows in Europe, but in Portugal it still hits a wall with regulations

The use of timber in construction is increasing across Europe, yet the sector continues to face significant regulatory barriers within Portugal.

SOS Amianto: works at Cascais school should be suspended

SOS Amianto reiterates the request for the suspension of work and lists serious irregularities detected on-site, days after Civil Protection guaranteed the safety of the school grounds.

PS Gaia also demands compensation during high-speed rail station construction

Socialists want an 'impact mitigation contract' signed regarding truck movements at the construction site.

Urban planning simplification: 'It will increase conflict between the technician and the developer, which will often end up in court'

There are new rules for construction and rehabilitation. The new Legal Regime for Urbanisation and Building (RJUE) came into force at the beginning of October and introduces new procedures for urban planning processes. Architect Miguel Saraiva warns of the risks with financial and social impacts. Listen to the podcast here.

Building in protected areas: between bureaucracy and the law

Each protected area has its own specific rules. There are many limitations and building from scratch is not a solution.

6% VAT in construction risks litigation

Former Secretary of State for Tax Affairs Sérgio Vasques believes that Portugal has managed the housing and urban rehabilitation VAT file “in a very, very amateur way,” creating paralysis.

State Budget 2027: 6% VAT in construction has zero impact on GDP and fails to boost housing, warns AHDPP

The proposed 2027 State Budget is unlikely to provide the expected stimulus for the construction sector, according to the Portuguese Housing and Development Association (AHDPP). The association highlights that the VAT reduction from 23% to 6% is projected to have a '0.0% of GDP' fiscal impact, suggesting the measure will be ineffective. AHDPP argues that the government is prioritising tax relief for existing landlords over new construction, while noting that short-term tax incentives for corporate housing are insufficient for long-term development. The association also warns of inflationary risks from continued rent support and urges for greater transparency regarding public housing goals and a move towards leasing public land rather than selling it to address the supply crisis.

Casais launches technological hub to accelerate the industrialisation of construction

At a time when the country is facing a housing sector crisis, the Casais Group, which has been investing in sustainable construction, has reinforced its commitment to industrialisation with the opening of a new industrial and technological hub in Braga. The goal is to contribute to the development of more sustainable and resilient infrastructure.

Mayor says injunction to stop Porto construction will allow for full clarification

Pedro Duarte further assured that he has not changed his opinion on the project and reiterated that it would never have been licensed in its current form during his term.

Three workers die in water reservoir at a house in Quinta do Lago

Three construction workers died this Monday, October 12, in a workplace accident inside a water reservoir at a private residence in Quinta do Lago, Loulé, Faro district, according to the GNR and Civil Protection. The workers were carrying out waterproofing tasks when they were found unresponsive. Despite resuscitation attempts, their deaths were declared at the scene. Three other individuals received assistance. The Authority for Working Conditions (ACT) is investigating the incident, which involved 30 personnel and 13 vehicles. In separate incidents, another worker died after being buried at a hotel construction site in Porto Covo, with one person still missing, and a worker died in Almada following a water pipe burst.

Public works tenders fall by 30% through August

The value of construction contracts signed and registered on the BASE Portal fell by 20% through August, to 3.148 billion euros, according to the Association of Civil Construction and Public Works Industries.

Public tenders slump by 30% in a construction sector forecast to grow by 4.4% this year

In the first eight months of 2026, public works tenders in Portugal saw a 30% drop, totalling €5.6 billion. This decline comes despite positive overall growth in construction activity, according to data from AICCOPN. The value of construction contracts signed and registered on the BASE portal also fell by 20% to €3.1 billion. However, cement consumption rose by 6.4% year-on-year through August, and new housing credit operations grew by 12.5% to €16.653 billion. The housing market continued to appreciate, with the House Price Index reaching a record high in the second quarter, up 16.5% year-on-year, even as the number of transactions fell by 6.4%. In the first seven months of the year, licensing for new homes rose by 4.5%, although the licensed area fell by 2.2%, highlighting a need to increase supply. In the non-residential segment, licensed area increased by 15.6%, driven by industrial building construction, which exceeded last year's figure by 538,000 square metres. Despite a 17.5% decrease in the number of licences issued, the sector remains resilient. For this year, AICCOPN forecasts a 4.4% growth in total construction production, with civil engineering leading at a projected 5.5% increase. The association stresses the importance of ensuring the timely execution of public investment to sustain continued sector growth.

SEDES wants Lisbon Olympic bid to accelerate construction works and rehabilitate degraded areas

Álvaro Beleza believes that setting a date for hosting the Olympic Games could help meet construction and renovation schedules. SEDES is considering targeting the 2040 or 2044 editions.

Cost of building a new house surges to 7.5% driven by rising material and labour prices

The costs of new housing construction accelerated in August, increasing by 7.5% compared to the same month last year, one percentage point higher than in July, when the year-on-year change was 6.5%. The rise was driven by both materials and labour, according to data released this Friday by the Institute...

Corporate turnover accelerates to 5.2% despite a decline in exports

In 2025, corporate turnover grew by 5.2%, according to an Informa D&B analysis released this Wednesday. The increase was primarily driven by the construction and real estate sectors, which saw growth of around 10% compared to the previous year. The domestic market played a crucial role, with a 7.1% increase, reflecting improvements across almost all sectors. Construction grew by 10.3%, accounting for a quarter of the total growth in the business sector, while real estate recorded a 9.8% increase. General and business services also stood out, with growth of 8.5% and 7.2%, respectively. However, not all sectors followed this positive trend; the energy and environmental industries recorded turnover decreases of 2.4% and 1%, respectively. Overall, 55% of companies reported higher turnover, although 34% saw this indicator fall. Exporting companies faced challenges, with a 2.4% drop in turnover following a 1.6% increase in 2024, a decline particularly influenced by the performance of larger firms. The number of exporting companies also fell by about 2% compared to the previous year. According to Informa D&B, the performance of the business sector in 2025 shows a more robust growth trajectory, following increases of 2.5% in 2023 and 3.9% in 2024. The study focused on public and private companies, excluding banking and insurance, based on financial information available on the Ministry of Justice portal. The number of companies grew by 3.3% and turnover reached 577 million in 2025.

Robots have already entered the construction industry

The machines promise to revolutionise the traditional construction model.

Cascais City Council challenges Public Prosecutor's order regarding Hilton hotel

The Public Prosecutor's Office requested the immediate suspension of construction on the new Hilton hotel in Parede and the demolition of at least three floors. The Cascais municipality confirms it is appealing the order.

Order of Accountants warns that VAT reduction in construction may not lower prices and anticipates problems with the Tax Authority

The reduction could be a “huge risk for developers” due to the wide range of possible interpretations

Building better starts with designing sustainably

Statements from the speakers on the construction sustainability panel - supported by Cimpor - on National Sustainability Day.

Mota-Engil consortium to build first phase of Luanda metro

Mota-Engil is part of the consortium chosen to execute the first phase of the Luanda light rail project, one of the largest transport projects currently in development in the Angolan capital. The Portuguese construction company is participating in the 2.25 billion dollar contract—equivalent to 1.98 billion euros at the current exchange rate.

13h Pinto Luz admits neglect of the excavation and earthmoving sector

Pinto Luz acknowledges that the excavation and earthmoving sector has been overlooked.