Porto mayor tackles the talent paradox

At MIPIM 2025, while many cities courted attention with flashy megaprojects, Porto stood out for its grounded, strategic approach to growth. Speaking to Real FDI, the city’s long-serving mayor, Rui Moreira, laid out a compelling case for why the Portuguese city is becoming a serious magnet for international investment, and it all comes down to talent, innovation and entrepreneurial spirit.

“Cities like ours face a paradox,” Moreira says. “We invest in high-quality education and produce top talent — and then we watch it leave.” Rather than try to employ graduates directly through the public sector, Porto has focused on making the city attractive enough for international companies to bring jobs to the talent, not the other way around.

The city’s pitch? A skilled workforce, competitive living costs, and a pro-business attitude. “Why hire Portuguese engineers to work in Germany when you could just open an office in Porto?” Moreira asks.

Key to this vision is housing. While Porto can’t match Nordic salaries, it can offer affordability. The municipality is working on long-term leasehold models to unlock land for housing development — a move that appeals to impact-driven investors and helps residents retain more disposable income.

The strategy is working. Porto’s digital and tech ecosystem has attracted global players like Natixis, Volkswagen, and BMW, drawn by local talent and a startup scene with serious scale-up potential. The city is also leveraging its tourism success: no longer Europe’s “best-kept secret,” Porto’s booming hospitality sector has further energised the local economy.

Importantly, Moreira doesn’t see government as the primary builder but as a facilitator. At MIPIM, Porto championed its private developers, connecting them with capital rather than leading with public megaprojects. “Porto is a city of entrepreneurs,” says Moreira. “My job isn’t just to be mayor, it’s to be their biggest promoter.”

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