Portugal housing projects licensed fall 7.3% while new dwellings rise 4.1% by August

Licensed projects fall as dwellings rise

The Portuguese construction association AICCOPN reported on Thursday, 29 October, that housing projects licensed in the first eight months of 2026 fell 7.3% year on year, to 12,805. The dwellings those licences enable nonetheless rose 4.1%, reaching 29,030 new homes. The association put the contrast this way.

“Despite the 7.3% contraction in the number of licensed projects, which came to 12,805, the number of new dwellings enabled by these licences recorded a 4.1% increase.”

Cement consumption for housing reached 2,828 thousand tonnes through the end of August, up 6.4%, slightly ahead of the 6.0% recorded through July. The association's latest Statistical Summary of Housing supplied the cement and credit data.

Licensed housing projects12,805

New dwellings enabled29,030

Licensed housing projects

12805

New dwellings enabled

29030

Data from the article text

Credit and property prices

New housing loans, excluding renegotiations, reached 16,653 million euros through August, a 12.5% rise on the year. The outstanding stock of housing credit stood at a record 119,062 million euros in August, up 11.2%. Average bank valuations of housing rose to 2,254 euros per square metre in August, 14.7% above the same month a year earlier. Apartments appreciated 17% over the year, while houses (moradias) rose 12.6%.

Porto metropolitan area

In the Porto Metropolitan Area, 10,846 dwellings in new buildings were licensed in the 12 months to August, 12% more than the 9,641 licensed in the same period a year earlier. By typology, 38% of the licensed units are T0 or T1, 33% are T2, 24% are T3 and 5% are T4 or larger. Those Porto figures cover 12 months, a different window from the national totals, which run through the first eight months. The mix shows the licensing pipeline is weighted toward smaller units.

Growth outlook slows

Portuguese economists quoted by SAPO expect GDP growth to slow through September, following a second quarter in which the economy grew 0.8%. SIC Notícias, citing estimates from the CIP and the ISEG, reported 0.9% growth in the second quarter, so the sources differ on that figure. The CIP and ISEG estimate GDP rose only 0.3% quarter on quarter in the third quarter, with household consumption weakened by higher fuel prices and credit costs. They still expect a recovery late in the year and growth of 2.3% in 2026, in line with the government forecast. The Bank of Portugal has revised its growth forecasts upward and expects GDP to rise up to 2.3% this year. The OECD, by contrast, cut its growth forecasts for Portugal, and economists cited by SAPO see annual GDP growth of up to 2.4% despite the late-year slowdown.

Q2 20260.9%

Q3 2026 estimate (CIP and ISEG)0.3%

Q2 2026

0.9 %

Q3 2026 estimate (CIP and ISEG)

0.3 %

Data from the article text