More than half of foreign direct investments are directed towards real estate.

In 2023, foreign direct investment (FDI) in Portugal amounted to 6.8 billion euros, which is a 16% decrease compared to 2022. More than half of these investments were related to real estate, the Bank of Portugal (BdP) reported on Tuesday, February 28, 2024.

More than half of all foreign direct investment (FDI) in Portugal last year (3.9 billion euros) was related to real estate investments, which is a 22% increase compared to 2022. Additionally, in 2023, direct foreign investments in real estate reached the highest level since the Bank of Portugal began monitoring in 2008.

In terms of total foreign direct investment (FDI) in 2023, the majority was directed towards European countries (€4.993 billion), followed by Asian countries (€1.175 billion).

By the end of 2023, foreign direct investment in Portugal reached 180 billion euros, which is 10.6 billion euros more than in 2022.

BdP noted that the relevant indicators for foreign direct investment (FDI) and Portugal's direct investments abroad have been increasing since 2008, albeit at different rates. FDI more than doubled from the end of 2008 to the end of 2023, while Portugal's direct investments abroad grew by 22%.

Last year, the regions of Greater Lisbon, the North, and the Algarve accounted for over 80% of FDI in Portugal.

Foreign direct investments are investments that involve control or a significant degree of influence over a company (such as acquiring companies, purchasing a substantial stake in a company, or providing loans).