N2AM – Sociedade Gestora de Orismos de Investimento Coletivo (SGOIC) released the main findings of its annual study "Alternative Real Estate Investment Funds – A Portrait of the Current Situation in Portugal," which analyses the dynamics of the national real estate investment fund industry.

The year 2025 is consolidating the strong growth trajectory of this sector, with April recording a 19% year-on-year increase in the number of active vehicles and a 21% increase in the value managed by real estate investment funds, while also overcoming new barriers in terms of size. Considering the data reported in April of this year, there were 321 active real estate investment funds in the country, responsible for managing €17,852 million, which means that the market is sustaining year-on-year growth rates of around 20% and that, on the other hand, it has also surpassed the record size recorded at the end of 2024.

The number of active management companies is another indicator of the industry's dynamics, with a total of 67 entities recorded in April. Over the past ten years, the number of management companies for this type of vehicle has not shown significant fluctuations, remaining between 50 and 60 operators, with growth expected to reach nearly 70 active entities in 2024 and 2025.

The expansion trend of the national real estate investment fund market continues this year. 2022 was the year that reversed the stabilization cycle observed since the post-troika period. In fact, between 2016 and 2021, the industry maintained a size with annual standards of around 200 active funds and a value under management of approximately €10.5 billion. In 2022, there were increases of 12% in the number of funds and 10% in the amount managed, but this meant reaching dimensions previously seen in the industry (222 funds and €12,203 million under management). Only in 2023 would a new historic mark be set, after a 21% increase in the number of active funds and 19% in the amount under management, which positioned the market at 268 registered funds and €14.518 billion under management. In 2024, the industry expanded again, with growth rates of 16% in the number of registered funds and 19% in the total amount under management, surpassing the unprecedented milestone of 300 funds (311) and €17 billion under management (€17.262 billion).

"The real estate investment fund industry has demonstrated a strong capacity for recovery in recent years, after a period of stagnation amid the financial crisis and the pandemic, which naturally slowed real estate investment activity," begins Nuno Marques, co-founder and director of N2AM.

He adds: "We've been growing since 2022, and 2025 shows that this trajectory continues, with the very positive outlook that we continue to have enormous expansion potential, especially in the current market climate, where it's necessary to create more supply and where funds can be an important driver in the development of housing-focused projects. Currently, most of the funds' real estate portfolios continue to consist of completed properties, and of these, housing remains a residual. This means that construction and real estate development projects still have plenty of room to grow in the funds' portfolios, especially rental housing."

The study "Alternative Real Estate Investment Organizations — A Portrait of Current Affairs in Portugal," developed by N2AM-SGOIC, reaches its second edition in 2025, presenting a detailed analysis of the real estate investment sector in Portugal. It addresses key economic indicators and real estate investment dynamics, characterizing investment organizations in terms of configuration, typology, and investment targets, and highlighting annual market developments with a long-term perspective.