N2AM – Sociedade Gestora de Organismos de Investimento Coletivo (SGOIC) recently published the main results of its annual study “Alternative Real Estate Investment Funds – Portrait of the Current Situation in Portugal”, demonstrating the sector’s steady growth. According to data for April 2025, Portugal has consolidated its steady growth trajectory, recording an impressive 19% increase in the number of active real estate investment funds and a 21% increase in the value of assets under management compared to last year. These figures show that new barriers in terms of market size have been overcome, with 321 active real estate investment funds operating in the country, managing assets worth €17,852 million.
This means that the market maintains a growth rate of around 20% year-on-year and, moreover, has surpassed the record size recorded at the end of 2024. The dynamics of the sector are also confirmed by the increase in the number of active management companies, of which 67 were registered in April, exceeding the typical range of 50 to 60 operators observed over the past decade and approaching the forecast number of around 70 by 2024 and 2025.
The trend towards expansion of the national real estate investment fund (REIF) market continues to develop steadily this year, showing impressive growth after a period of stabilization. Thus, from 2016 to 2021, the sector maintained stable indicators, numbering around 200 active funds with a total value under management of approximately 10.5 billion euros. The turning point was 2022, when, despite an increase in the number of funds by 12% and the volume of management by 10%, the market only restored the previously achieved levels, recording 222 funds and 12.203 billion euros under management. However, already in 2023, a new historical record was set: the number of active funds increased by 21%, and the volume of management by 19%, which led to the registration of 268 funds with assets of 14.518 billion euros.
This means that the market maintains a growth rate of around 20% year-on-year and, moreover, has surpassed the record size recorded at the end of 2024. The dynamics of the sector are also confirmed by the increase in the number of active management companies, of which 67 were registered in April, exceeding the typical range of 50 to 60 operators observed over the past decade and approaching the forecast number of around 70 by 2024 and 2025.
The trend towards expansion of the national real estate investment fund (REIF) market continues to develop steadily this year, showing impressive growth after a period of stabilization. Thus, from 2016 to 2021, the sector maintained stable indicators, numbering around 200 active funds with a total value under management of approximately 10.5 billion euros. The turning point was 2022, when, despite an increase in the number of funds by 12% and the volume of management by 10%, the market only restored the previously achieved levels, recording 222 funds and 12.203 billion euros under management. However, already in 2023, a new historical record was set: the number of active funds increased by 21%, and the volume of management by 19%, which led to the registration of 268 funds with assets of 14.518 billion euros.
This momentum continued in 2024, when the market expanded again, increasing the number of registered funds by 16% and the total amount of funds under management by 19%, surpassing the unprecedented milestone of 311 funds and €17.262 billion. As Nuno Marques, co-founder and director of N2AM, points out, such explosive growth in recent years clearly demonstrates the high capacity of the real estate investment fund industry to recover from the period of stagnation caused by the global financial crisis and the pandemic, which significantly slowed down investment activity in the real estate sector.
The real estate sector has been showing steady growth since 2022, and this positive trend is expected to continue in 2025. According to industry representatives, the market has enormous potential for expansion, especially in the current environment, when there is an urgent need to increase supply. It is noted that investment funds can become a key driver for the development of projects focused on residential real estate, in particular rental housing.
Currently, the majority of fund portfolios are still comprised of completed projects, with housing only a partial share, indicating significant growth opportunities for new construction and development projects in fund portfolios. An in-depth analysis of this sector and the role of alternative investment vehicles in Portugal will be presented in the second edition of the study “Alternative Real Estate Investment Vehicles – A Portrait of the Current Situation in Portugal”, developed by N2AM-SGOIC and scheduled for release in 2025. The report will provide a detailed overview of investment dynamics, key economic indicators, investment vehicle characteristics and long-term market trends.
The real estate sector has been showing steady growth since 2022, and this positive trend is expected to continue in 2025. According to industry representatives, the market has enormous potential for expansion, especially in the current environment, when there is an urgent need to increase supply. It is noted that investment funds can become a key driver for the development of projects focused on residential real estate, in particular rental housing.
Currently, the majority of fund portfolios are still comprised of completed projects, with housing only a partial share, indicating significant growth opportunities for new construction and development projects in fund portfolios. An in-depth analysis of this sector and the role of alternative investment vehicles in Portugal will be presented in the second edition of the study “Alternative Real Estate Investment Vehicles – A Portrait of the Current Situation in Portugal”, developed by N2AM-SGOIC and scheduled for release in 2025. The report will provide a detailed overview of investment dynamics, key economic indicators, investment vehicle characteristics and long-term market trends.