At MIPIM, the world’s largest gathering of real estate investors and developers, key stakeholders in Portugal took the stage to discuss the country's evolving investment landscape, emphasizing its economic stability, regulatory predictability, and expanding market opportunities.
During the Portuguese Conference, organized by Iberian Property and APPII, Rui Moreira, Mayor of Porto, highlighted how Portugal has been rediscovered in recent years. While its cities have always been attractive, effective storytelling and international exposure have solidified its reputation as a diverse, stable, and opportunity-rich market. With increasing Foreign Direct Investment (FDI), both domestic and international investors are driving demand across multiple asset classes, from residential to industrial and tourism-related developments.
Luis Mota Duarte, Deputy CEO of Sonae Sierra, reinforced this point, emphasizing Portugal’s sustainable economic growth, with GDP and FDI surpassing the European average. Liquidity has also strengthened, and the perceived risk premium is now aligning more accurately with actual market risks, making investment decisions more transparent and secure.
According to Inês Medeiros, Mayor of Almada, Portugal is witnessing an important shift from tourism to residency. She noted a growing trend of individuals transitioning from visiting Portugal as tourists to choosing it as a permanent place to live. "The quality of life is a major draw, particularly for young families, and efforts are being made to ensure that this growing demand is matched by sustainable urban development and housing solutions".
For its part, Anthony Lanier, Chairman at Eastbanc, pointed out that while Portugal's relatively smaller size can be perceived as a challenge, it also presents unique advantages. The country’s global footprint, strategic European positioning, and high quality of life contribute to its appeal as a real estate investment destination.
Public-Private Synergies & Affordable Housing
Public-private partnerships remain a key driver for addressing housing needs. Claude Kandiyoti, President at Krest Investments, and a long-term investor in Portugal, acknowledged that although the country has historically lacked development momentum, patience and strategic investment are beginning to yield positive results.
Rui Moreira underlined the importance of licensing reforms in attracting capital, stressing the need for transparency and predictability in urban planning. Porto has taken significant steps in digitizing the approval process, ensuring efficiency and accountability. Furthermore, he emphasized the need for a shift in perception around densification, particularly in industrial areas, where strategic urban planning can create vibrant, livable spaces.
In Almada, collaboration with private sector players is vital, given the municipality’s 30km of river and seafront. Inês Medeiros advocated for a national urban development pact and a reassessment of European regulations that may not align with local realities. She underscored that to create more green and public spaces, cities must also expand vertically.
Luis Mota Duarte reinforced that investors now prioritize environmental, social, and governance (ESG) criteria, with Portugal’s real estate sector leading in social responsibility through Build-to-Rent (BTR) and affordable housing initiatives. Although these projects typically yield lower returns, their long-term value and alignment with institutional investor expectations make them highly attractive.
Claude Kandiyoti shared his experience in affordable housing projects in Brussels and expressed a strong interest in replicating such initiatives in Portugal. However, he noted that finding the right public-private partnership framework remains a challenge. Despite this, his firm has been actively consolidating a land bank, providing a buffer to navigate regulatory hurdles and secure returns on affordable housing investments.
Retrofitting and Sustainability
Porto is taking a proactive approach to sustainability, with 13% of its housing stock under municipal ownership. Rui Moreira emphasized the city's commitment to retrofitting these properties to improve energy efficiency and living conditions, aligning affordability with sustainability objectives. Reducing energy consumption in public housing contributes to social welfare while promoting environmental responsibility.
Luis Mota Duarte concluded that Portugal’s unique positioning as a "big city theme in a small country" makes it an attractive co-investment opportunity for international capital. Beyond location, liquidity and asset class diversification will continue to shape investor sentiment in the coming years.
Portugal's real estate sector is proving to be more than just an emerging market—it is a mature, sustainable, and globally relevant investment destination. The discussions at MIPIM reinforced the country’s commitment to fostering public-private collaboration, regulatory transparency, and responsible urban expansion. As affordability, sustainability, and liquidity drive the next phase of market evolution, Portugal stands ready to welcome long-term investors who seek both financial returns and meaningful social impact.