Recently, the Portuguese Construction Industry Association (AICCOPN) released data that as of August, the total domestic cement consumption in Portugal reached 2.657 million tons, down 1.6% from the same period last year. Despite the growth in the residential real estate market, cement consumption is still on a downward trend. This trend contrasts with the expansion in the residential market and the public works sector, AICCOPN said, suggesting that activity in this sector is not reflected proportionately in the consumption of this essential material.
In AICCOPN's "Building Outlook-News Flash" report, the association highlighted that the housing market showed "particularly strong dynamics" in the second quarter of 2025, with 42889 units sold, up 15.5% year-on-year, equivalent to an increase of 5764 units. In terms of the total value of transactions, it reached 10.27 billion euros, showing a "significant increase" of 30.4%. During this period, the house price index also reached a record high, rising 17.2% year-on-year and 4.7% year-on-year, which further confirms the trend of accelerating residential prices observed in previous quarters.
AICCOPN also noted that this "robust dynamism" in the real estate market is also reflected in the evolution of the permit approval process. In the first seven months of 2025, local authorities issued 15846 permits, 1445 more than same period in 2024, an increase of 10% over the same period last year. In terms of building permits, the housing sector grew by a cumulative 18.1% through July, while the non-residential construction sector grew by a relatively "modest" 2.1%.
At the same time, the association also noted that the mortgage market also experienced "significant growth" in 2025. The cumulative year-on-year change in new credit (excluding renegotiation) in August was 37.7%, a performance that "confirms that the strong dynamics of personal financing have been maintained, further reinforcing the important role of credit as a support for housing demand".
In the public works market, AICCOPN also noted that the indicators showed a "strong growth trajectory of activity". As of August, the total amount of public works tenders reached 7.915 billion euros, an increase of 28% over the same period in 2024. The value of contracts signed and registered on the Base portal reached 3.948 billion euros, an increase of 48% over the previous year.