Urban rehabilitation activity declines
The urban rehabilitation sector started 2026 showing signs of slowdown. According to the Associação dos Industriais da Construção Civil e Obras Públicas e Serviços, the urban rehabilitation activity index recorded a year-on-year decrease of 0.8%. This drop in urban rehabilitation reflects weaker market dynamics, in a context where urban rehabilitation had been showing greater stability in previous periods. The trend indicates a loss of momentum in urban rehabilitation, particularly in smaller-scale projects.
Orders and contracted production fall
The order backlog in urban rehabilitation also decreased by 1.4%, signalling a lower volume of future work in the sector. Contracted production in urban rehabilitation, which measures secured activity for the coming months, also registered a decline. This trend suggests reduced predictability in urban rehabilitation, with a direct impact on operators’ confidence and on the execution of new urban rehabilitation projects.
Sharp drop in construction licensing
Licensing of urban rehabilitation works recorded a significant year-on-year decrease of 20.1% up to February 2026. This drop in urban rehabilitation affected both the residential segment, with a reduction of 15.5%, and the non-residential segment, which fell by 26.9%. These figures show a broad-based slowdown in urban rehabilitation, reflecting fewer approved operations and less dynamism in the launch of new urban rehabilitation projects.