Portugal sees record investment in real estate funds

Real estate held by investment fund portfolios in Portugal reached a record last year. The conversion of unregulated companies and structures drove the sector, generating a wave of professionalisation in real estate asset management. Adding to this movement was the positive macroeconomic scenario and the appetite of foreign investors for Portugal.

Assets managed by alternative real estate investment organisations grew 19.3% in 2025, reaching a record value of €28.9Bn, according to data from the Portuguese Association of Investment, Pension and Asset Funds (APFIPP).

Association president João Pratas told the business daily Negócios that this uptick resulted mainly from a movement that has been seen towards the conversion of companies, and other non-regulated real estate investment structures, into Open-ended Real Estate AIFs and Closed-ended Real Estate AIFs (OIA Imobiliários in Portuguese), more precisely into real estate collective investment companies (SICs in Portuguese).

“This increase has arisen, first, from a recognition by investors, especially foreign ones, that having their real estate assets managed in a professional and competent manner, in a regulated environment, ensures greater transparency and confidence for them”, said João Pratas.

“The existence of a stable and adequate regulatory and fiscal framework has been fundamental for increasing investment in the real estate segment in Portugal which can be seen from Real Estate AIFs and, in particular, Real Estate Investment Trusts (REITS) (SICs in Portuguese).”

In 2025, 82 new SIC Imobiliárias (REITS) were created, almost all through conversion of previously existing unregulated structures. At the end of 2025, these vehicles had €3.4Bn of assets under management, representing 73.6% of the increase observed for the year.

Source: Negócios. Credits: AFPIPP