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More Than Six Real Estate and Construction Companies Created Every Day in Portugal

15 May 2018

Real estate and construction, along with tourism-related activities, are currently among the most dynamic sectors of the Portuguese economy. In the first four months of the year, 423 real estate companies (34.6% year-on-year increase) and 306 construction companies (+22.9%) were created. It is equivalent to six new companies every day.

A report by Informa D&B states that, in total, 17,002 companies and other organisations were created between January and April 2018, 13.4% more than in the same period last year. In addition to real estate and construction, activities linked to tourism boosted the growth of new companies, with a further 649 companies created in the service industry (+13.3%), “with a strong contribution by tourism and travel agencies.”

Local accommodation encourages business activity

In the case of accommodations and restaurants, 235 more companies were created (+13.2%), “with the largest contribution coming from accommodations, in particular, furnished accommodations for tourists, although the restaurant sector accounts for two-thirds of companies created in the sector”, D&B highlighted.

The tourism-related transport sector registered the creation of an additional 212 companies, a year-on-year increase of 55.2%. The increase was due “in particular to the occasional transport of passengers in light vehicles,” according to D&B.

The exception to the general rise in the number of companies in the first four months of 2018 can be found in the agriculture, livestock, fishing and hunting sector, where 277 fewer companies were created than a year ago, which represents a year-on-year fall of 34.8%.

The closures in the first four months of the year (4,880) remained close to the amount seen in the same period last year (+1.9%), while in new insolvencies (870), the downward cycle which began in 2013 continued, though in a less pronounced way.

Original Story: Idealista

Translation: Richard Turner