Document of Land and Property Transactions
The real estate investment fund industry in Portugal is experiencing robust growth and evolution, as highlighted in the latest study "Alternative Real Estate Investment Funds – A Portrait of the Current Situation in Portugal" published by N2AM-SGOIC in 2025.
As of April 2025, 321 active real estate investment funds are managing a total of €17.85 billion, marking a 20% year-on-year increase in both fund count and value, surpassing the size record of 2024.
Key trends and projections include a continued growth trajectory with a 19% increase in active vehicles and a 21% increase in managed assets in early 2025, suggesting a dynamic expansion ahead.
Following policy changes that removed residential real estate from qualifying investment options for Portugal’s Golden Visa scheme in October 2023, there has been a significant pivot toward investment funds, especially venture capital and private equity funds that comply with new regulations focused on business equity rather than pure real estate assets.
Fund investments have surged in importance as a legal, diversified, and professionally managed alternative. These funds often invest in commercial properties (like hotels, retail, offices), startups, and other business ventures, meeting stricter regulatory and sustainability criteria introduced recently.
Commercial real estate investments are sharply rising, with a 151% increase in Q1 2025 versus Q1 2024, fueled especially by retail and hospitality sectors. This commercial growth indirectly supports real estate funds focusing on these asset types.
Beyond just real estate, investment funds overall in Portugal have shown strong asset growth, reaching €22.7 billion in 2025, a 22% increase from 2024, highlighting broader investor confidence.
The real estate investment fund industry in Portugal has demonstrated a strong capacity for recovery since 2022. In 2023, the number of active real estate investment funds increased by 21%, and the total amount under management increased by 19%.
Construction and real estate development projects still have plenty of room to grow in the funds' portfolios, especially for rental housing in Portugal. The study characterizes investment organizations in terms of configuration, typology, and investment targets.
Nuno Marques, co-founder and director of N2AM, has stated that the industry continues to grow in 2025, and the real estate sector in Portugal has enormous expansion potential, especially in the current market climate. Funds can be an important driver in the development of housing-focused projects in Portugal.
The study provides a detailed analysis of the real estate investment sector in Portugal, including key economic indicators and real estate investment dynamics. It highlights annual market developments with a long-term perspective, offering insights into the market's evolving nature and future prospects.
[1] N2AM-SGOIC. (2025). Alternative Real Estate Investment Funds – A Portrait of the Current Situation in Portugal. [2] SEF. (2023). Golden Visa Policy Changes. [3] INE. (2025). Q1 2025 Commercial Real Estate Statistics. [4] CMVM. (2023). Regulatory Updates for Real Estate Investment Funds. [5] Banco de Portugal. (2025). Investment Fund Asset Growth Report.
Investors are increasing their focus on real estate investment funds in Portugal, particularly those that comply with new regulations, as the industry continues to demonstrate robust growth, with 321 active funds managing €17.85 billion as of April 2025. Nuno Marques, co-founder of N2AM, predicts that the real estate sector in Portugal has enormous expansion potential, especially for funds specializing in rental housing projects.
The growth trajectory of real estate investment funds in Portugal suggests a dynamic expansion ahead, with a 20% year-on-year increase in both fund count and value. Commercial real estate investments, fueled by retail and hospitality sectors, are sharply rising, making up a significant portion of these funds' portfolios.
