Markets, Business & Tech Briefing — February 23, 2026

European Markets Close Mixed Amid Global Volatility

European equities ended last week on an uncertain note. The S&P 500 edged up 0.15 percent to 6,872 on Friday, while the Dow fell 0.21 percent after weaker-than-expected U.S. Q4 GDP data collided with a Supreme Court decision overturning certain tariffs. Portuguese markets tracked European sentiment, with investors watching the ECB's next moves closely.

EUR/USD Under Pressure

The euro traded near $1.18 against the dollar last week, reflecting continued divergence between ECB and Fed policy expectations. The warmer-than-expected U.S. core PCE reading of 3 percent dampened rate-cut hopes stateside, lending modest support to the greenback.

Real Estate Investment Hit 2.8 Billion Euros in 2025

Portugal's commercial real estate sector attracted 2.8 billion euros in investment last year, a 22 percent jump over 2024 and above the decade average. Offices, retail, and hospitality led capital flows. Logistics yields show potential for compression as e-commerce demand grows.

Lisbon Passes 6,000 EUR/sqm

Lisbon's median residential price has crossed the 6,000 euros per square metre threshold. Nationally, the median exceeds 3,000 euros. Growth is projected at 7 percent for 2026, down from 15 percent in 2025, as the market transitions from rapid expansion to consolidation.

Interior Cities Post 20%+ Property Gains

District capitals including Guarda, Beja, and Santarem registered property price growth above 20 percent, while the Azores and Madeira showed strong valuations. The geographic spread of investment is reshaping Portugal's property map.

Government Raises Storm Relief to 3.5 Billion Euros

The expanded disaster package will have significant fiscal implications. The new PTRR framework adds spending commitments across infrastructure, emergency services, and institutional reform. Analysts are watching how this interacts with Portugal's EU fiscal commitments.

ASAE Cracks Down on Building Material Price Gouging

Criminal proceedings opened against sellers in Batalha and Coimbra for inflating roof tile prices post-storm. The investigations signal regulatory attention to construction supply chains under pressure from reconstruction demand.

Startup Ecosystem Expands Beyond Lisbon-Porto

Portugal now hosts approximately 130 startup incubators spread across the national territory, with Braga, Coimbra, Aveiro, and the Algarve all emerging as secondary hubs. A 20-company delegation was recently featured at Web Summit Vancouver as part of Startup Portugal's internationalisation push.

VAT Cuts and Landlord Tax Breaks Target Rental Supply

The government's recent package of VAT reductions on construction materials and IRS incentives for landlords aims to unlock new rental supply. Idealista data showing Lisbon tenants spending 82 percent of income on rent underscores the urgency.

Construction Sector Faces Paradox

Demand for construction is booming — driven by both storm reconstruction and chronic housing undersupply — but the sector faces persistent labour shortages and licensing bottlenecks. Industry voices argue that adapting to 2035 energy standards now is essential for firms that want to remain competitive.

Digital Nomad and Tech Scene Update

Portugal continues to position itself as a top European destination for remote workers and tech talent. The HQA programme, which connects international entrepreneurs with Portuguese universities, is attracting transnational founders who use the country as a base to launch and scale innovation across European markets.