Building permits fell by 14.2% in Portugal in the fourth quarter of 2025, a decline of 5,800 buildings year-on-year, according to INE, the country’s statistics body.
This decline was more pronounced than in the previous quarter (-2.6%), the data showed.
Breaking down the data by type, permits for new construction dropped 11.4%, while renovation permits fell by 22.0%, reinforcing a downward trend from the third quarter of 2025.
Despite fewer building permits, the number of completed buildings in Q4 2025 was approximately 4,100 marking a smaller year-on-year decrease of 4.2% compared to Q3 (-5.1%).
Residential sector
In the residential sector, however, the trends were more positive, INE noted. The number of dwellings licensed in new constructions rose 16.0%, up from 8.9% in Q3 2025. Completed dwellings increased by 3.6%, although slightly slower than the 8.7% growth seen in the previous quarter.
Quarter-on-quarter comparisons show a decrease of 8.6% in building permits but a 2.3% increase in completed buildings.
Looking at annual trends, meanwhile, preliminary 2025 data indicates a modest 2.3% rise in total building permits compared with 2024, while completed works fell 8.8%, according to INE. This suggests a lag in construction completion relative to approvals, which could affect housing supply and planning strategies in the near term. Read more here.
