AnAn increasing number of foreigners are choosing to live in Portugal. In 2020, according to the Asylum, Borders, and Immigration Report (RIFA), the expat population increased by 12.2%, compared to 2019, for a total of 662,095 resident foreigners.
Quality of life and the opportunities presented by the country’s economic recovery are proving to be a lightning rod for people looking for a change of life. If you are considering moving to or investing in Portugal, these are the sectors which have benefited most from the economic cycle.
The crisis brought on by the Covid-19 pandemic increased instability at a global level and led to a generalised fall in GDP. Portugal was no exception. However, Portugal’s GDP is expected to grow by 5.2% in 2021, and 3.8% in 2022, which means that there is light at the end of the tunnel for Portuguese companies and citizens.
Real estate still steady
Despite the Covid-19 pandemic having slowed the number of sales of houses, prices continued to climb, albeit by less than in the quarters before March 2020. For example, according to the National Statistics Bureau, the Housing Prices Index (IPHab) for the second quarter of 2021 grew by 6.6% when compared to the same period of the year before, and 1.4 percentage points above the previous quarter.
Geographically, the most valuable properties are in large urban centres such as Lisbon and Porto.
Portugal’s attraction as a working and living destination, along with a growing tendency by the banks to finance housing, should continue to support the rise in prices, especially in the areas where evaluations have grown more slowly. Therefore, even though profit margins are currently lower, real estate continues to be a hot investment sector in Portugal.
| Housing Price Rates | ||
| Period | National Total (percentage points) | Annual rate of change (%) |
| 3T2018 | 129,72 | 8,5 |
| 4T2018 | 132,34 | 9,3 |
| 1T2019 | 137,14 | 9,2 |
| 2T2019 | 141,49 | 10,1 |
| 3T2019 | 143,12 | 10,3 |
| 4T2019 | 144,10 | 8,9 |
| 1T2020 | 151,23 | 10,3 |
| 2T2020 | 152,50 | 7,8 |
| 3T2020 | 153,27 | 7,1 |
| 4T2020 | 156,53 | 8,6 |
| 1T2021 | 159,10 | 5,2 |
| 2T2021 | 1162,54 | 6,6 |
Tourism to remain hot
Tourism is another of the sectors which has garnered interest from those looking to invest in Portugal. In 2019, Portugal hosted over 24.6 million tourists and it continues to be one of the most popular tourist destinations after the pandemic. Revenue generated by tourism in 2019 reached 21.6 billion dollars (around 18.7 billion euros). Despite still being low in 2021, these figures are expected to recover bit by bit, all the more since Portugal can boast having the highest anti-Covid vaccination rate in the World.
Investment in local lodging or other tourism-related projects will continue, therefore, to be lucrative.
Energise your investments
Renewable energies are all the fashion. Rising awareness of the need to develop alternatives to polluting energy sources such as oil has encouraged growth in the renewable energies market in Portugal. And the country boasts excellent weather conditions for the sector, from wind power to sun, or waves.
Therefore, the energy sector is one of the ones which has proven most attractive to people looking to invest in Portugal. You can choose to become a microproducer of energy to sell to the grid or invest in solar or photovoltaic panels. A return on your investment may take its time, but it will be frankly positive.
From agriculture to technology
Agriculture is another of the pillars of this new wave of investment in Portugal. The country has great conditions for certain products such as wine and olive oil, two of Portugal’s most sought-after products. The famous Port Wine is a leading brand in the world, but there is much more to the agricultural sector than that, and a growing number of people are investing. These investments can also benefit from variety of European Union support programmes, namely within the framework of the Recovery and Resilience Plan (PRR).
Although less traditional, the IT sector has also been registering strong growth over the past few years. Several companies have relocated to Portugal, thereby benefiting from the progress which has been made in this sector, and the country’s skills. This is, therefore, another hot sector for those looking to invest in Portugal. All you need is creativity and to step into this competitive market.
