Portugal real estate investment is on the rise as Swedish companies plan to significantly increase their presence in the market by 2025. This trend reflects a growing confidence in Portugal’s economic stability and potential for lucrative returns.
A recent survey conducted by Business Sweden, the Swedish Embassy in Lisbon, and the Portuguese-Swedish Chamber of Commerce reveals a growing optimism among Swedish companies regarding investment opportunities in Portugal. The findings indicate that a significant majority of these companies plan to enhance their investment activities in the Portuguese market by 2025, reflecting a positive shift in the business climate.
Growing Confidence in the Portuguese Market
The “Business Climate Survey,” conducted in February and March 2025, highlights a notable increase in the confidence of Swedish companies operating in Portugal. More than half of the respondents, specifically 51%, expressed intentions to increase their investments in Portugal, a marked increase from 41% reported in the previous year. This optimism is particularly pronounced among companies that have entered the Portuguese market more recently, with 68% of those arriving since 2020 planning to boost their investments this year.
According to data from the Bank of Portugal, the stock of Swedish Foreign Direct Investment (FDI) in the country has seen substantial growth since 2019, reaching approximately €3.1 billion by the end of the first quarter of 2025. Over the past six years, Swedish investments in Portugal have exceeded €1.3 billion, effectively doubling the Swedish presence in the country.
Economic Activity and Profitability
The survey results also indicate a heightened expectation for economic activity among Swedish companies in Portugal. 73% of respondents anticipate an increase in their business activities, a significant rise from 57% in 2023. Furthermore, 76% of the surveyed companies reported profitability in 2024, showcasing improved performance compared to two years prior.
The diverse sectors represented by Swedish companies in Portugal include pharmaceuticals, health, fintech, digitalization, security, automotive, energy, business services, and consumer goods. This broad range of industries underscores the versatility and adaptability of Swedish investments in the Portuguese market.
Strategic Sectors for Investment
In recent years, Swedish companies have made considerable strides in sectors that are vital to the Portuguese economy.
The renewable energy sector presents significant opportunities for Swedish investment, aligning with Portugal’s commitment to clean energy and sustainability.
Notable Swedish Companies in Portugal
Several prominent Swedish companies have established a strong presence in Portugal, including Securitas, IKEA, Diaverum, Essity, Ericsson, and Volvo Car Portugal. These companies not only contribute to the economy but also create jobs and foster innovation across various sectors.
The Swedish Perspective
These results show that Swedish investment in Portugal has not only been a reality but is set to continue. Swedish companies are optimistic about the performance of the Portuguese economy and will continue to invest and create jobs. The “Sweden brand” is one that the Portuguese people trust and value, which has facilitated the acceleration of investments in recent years.
Portugal offers an attractive investment landscape, characterized by clean energy, robust infrastructure, global connectivity, and a highly specialized workforce. This combination of factors positions Portugal as a favorable destination for Swedish companies seeking to expand their operations.
The findings from the recent survey underscore a growing trend of Swedish investment in Portugal, with companies expressing increased confidence in the market’s potential. As more Swedish firms plan to enhance their investments by 2025, the implications for the Portuguese economy are significant, promising job creation and economic growth.
With strategic sectors such as renewable energy poised for further development, the collaboration between Swedish companies and the Portuguese market is likely to flourish in the coming years. As the Swedish presence in Portugal continues to grow, it will be essential for both governments and businesses to foster an environment conducive to innovation and sustainable development.
