Real estate drives FDI in Portugal in Q3

In the third quarter of this year, foreign direct investment in Portugal totalled €5.6Bn, surpassing the €4.2Bn recorded in the same period of 2023. This growth was largely driven by the investment of non-residents in the capital of Portuguese entities, which represented €3.5Bn.

According to data published by the Bank of Portugal (BdP), of this amount, around €1.0Bn correspond to investment in the real estate sector.

Between July and September, FDI income, paid to non-residents, was €4.1 billion, €0.3Bn more than in the same period of the previous year. On the other hand, Portugal’s direct investment transactions abroad (IPE), received from non-residents, totalled €2.0Bn, €0.2Bn less than in the third quarter of 2023.

At the end of the period under review, the stock of foreign direct investment in Portugal (FDI) was €196.5Bn, and Portugal’s direct investment abroad (IPE) was €71.5Bn. These amounts represented, respectively, 70% and 26% of Portuguese GDP.

Since 2008, both stocks have increased, although at different rates, the statistical press release also details: FDI more than doubled between the end of 2008 and the third quarter of 2024, while the IPE grew by 32%. When measured as a percentage of GDP, the weight of FDI increased by 25 percentage points, but the weight of the EPI decreased by 4 percentage points.