Portugal has increasingly established itself as one of the most attractive destinations in Europe for real estate investment, benefiting from a stable macroeconomic environment and an appealing regulatory framework. Its unique combination of legal security and privileged geographical location – distanced from geopolitical tensions – creates a trustworthy environment for both domestic and international investors.
This context, coupled with demographic dynamics driven by a positive migratory balance, has enhanced investor confidence and fueled demand for structured investment solutions. According to the Portugal Real Estate Market Outlook 2025 report by CBRE, the real estate sector saw significant growth in 2024, with a 44% increase in investment volume compared to the previous year, totaling 2.3 billion euros. For 2025, the outlook remains optimistic, with a projected additional growth of 8%, potentially surpassing 2.5 billion euros.
Collective asset management can be carried out in various forms, depending on its purpose and structure. Among the existing models, Collective Investment Undertakings (OICs) play a key role in attracting capital from investors and applying it in a structured way, promoting the financing of the economy. These undertakings follow a pre-defined investment policy, aligned with the principles established by the Asset Management Regime (RGA), which harmonizes the OIC concept with European Union standards.
With the publication of Decree-Law No. 27/2023, of April 28, which approves the RGA, the regulatory framework for OICs was consolidated into a single piece of legislation. In tun, the Regulation of the Asset Management Regime (RGGA) preserves the solutions set forth in the RGA and enhances them in terms of simplification and proportionality, promoting competitiveness and efficiency in the domestic market, while ensuring investor protection.
In a move to clarify and modernize the regulatory framework, the RGA redefined the types of Alternative Investment Undertakings (OIAs), structuring them into three main categories: real estate, private equity, and credit OIAs – the latter having been recently incorporated into the legal system. The regime also allows for a residual and open-ended model, enabling the creation of new types of OIAs beyond those explicitly defined, fostering innovation.
The OIAs (i) may be structured as Collective Investment Companies (SICs), with legal personality, or as Investment Funds, without legal personality; (ii) may be (internally) self-managed or (externally) managed by a specialized entity (externally managed); and (iii) are classified as open-ended or closed-ended, depending on whether the number of shares or
participation units in circulation is variable – allowing subscription and redemption at the participants’ request – or fixed. Another key feature is the possibility of creating ring-fenced compartments, allowing for the segregation of different investment strategies. The RGA also removed minimum net asset value thresholds, promoting a more flexible environment for the establishment and management of these undertakings.
In the specific case of real estate OIAs, the RGA expanded the range of eligible assets for investment, allowing capital to be applied in rural and mixed-use properties, as well as in construction and rehabilitation projects intended for rental, operation, or resale. It is also possible to acquire stakes in real estate companies and invest in participation units of other real estate OIAs, paving the way for increasingly diversified and sophisticated strategies.
This modern regulatory framework, combined with the favorable macroeconomic context, has been driving capital attraction toward real estate OIAs, establishing them as essential tools for the development of the Portuguese real estate sector and the stimulation of the capital market. The regulatory streamlining aims to position Portugal as a preferred destination for institutional and private investors.
This growth is reflected in significant figures: according to data published by the Portuguese Securities Market Commission (CMVM), the value under management of real estate OIAs surpassed €16.385 billion in 2024 – an increase of €1.946 billion compared to the previous year – reflecting investors’ growing confidence in this structuring approach.
As the market evolves, the role of management companies becomes increasingly crucial. Their know-how and execution capabilities are critical factors in ensuring solid returns and aligning management practices with international standards. The activities of management companies are supported by other entities, such as custodians and marketing entities, all bound by the principle of acting in the exclusive interest of participants and ensuring efficient and transparent management.
The management company plays a key role in the management and operation of OIAs, upholding efficiency and compliance with regulatory provisions. Its responsibilities include investment and risk management, as well as the marketing and administration of the fund. The range of services provided may also encompass real estate management and specialized consultancy.
In conclusion, the future of real estate investment in Portugal increasingly depends on the adoption of structured and regulated solutions. Real estate OIAs are at the heart of this
transformation, positioning themselves as strategic tools for efficiently raising and allocating capital with institutional rigor.
This is the moment to boost confidence in regulated structures and to embrace specialized management, capable of keeping pace with the market’s sophistication and responding to the demands of an increasingly informed and discerning investor.
It is also worth noting that real estate OIAs benefit from a more favorable tax regime in Portugal, representing an additional incentive for their adoption as investment vehicles – a topic that will be explored in a future article.
Manuel Pinto de Abreu
Head of Real Estate – STAG Fund Management SCR
+351 924 962 026