The Algarve continues to assert itself as one of the most attractive destinations for foreign direct investment (IDE) in Portugal. According to data released by Banco de Portugal (), the region received a total of 19.5 billion euros in 2024, representing 9.7% of the total of IDE stock in the country
In the national context, the IDE reached a historical volume of 13.2 billion euros, registering an increase of 18.9% compared to the 11.1 billion recorded by 2023. This growth was driven, mainly by investment in capital of Portuguese companies, worth 11.1 billion euros. Real estate investment also had a significant contribution, representing 3.5 billion euros of the total.
“IDE transactions also reflect a significant contribution of real estate investment, worth € 3.5 billion,” said the BDP, confirming the growing interest of international investors in the Portuguese market, including the Algarve.
The Algarve region emerges as the third most attractive for foreign investment in Portugal, only surpassed by the North, which registered a total of 34.6 billion euros (17.3% of the total IDE), and by Greater Lisbon, which continues to lead with a volume of 106.2 billion euros, representing 53% of the total. The main foreign investors in Portugal in 2024 were Spain (3.8 billion euros), Luxembourg (3.1 billion euros) and the Netherlands (1.4 billion euros). Although Luxembourg has focused its attention on Madeira and the Netherlands in Greater Lisbon, the Algarve has attracted a growing volume of capital to the real estate and tourist sector, two of the main engines of the local economy.
On the other hand, Portugal also reinforced its presence in foreign investment, with Portugal’s direct investment transactions abroad to reach 7.2 billion euros, a significant increase over the 5.7 billion recorded in the previous year.
At the end of 2024, the IDE stock in Portugal ascended to 200.3 billion euros, corresponding to 71% of Gross Domestic Product (GDP), while the direct investment of Portugal abroad was 76 billion euros, equivalent to 27% of GDP.
The tendency to grow foreign investment in the Algarve reflects its strategic position, economic stability and quality of life that continues to attract investors, especially in the tourist and real estate sector. The increase in IDE in the region underlines the importance of the Algarve in the national economy and reinforces the need for policies that promote sustainable and balanced growth in the region.
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