My Lisbon Holidays — Why real estate in portugal is getting more expensive ? (2024)

FAQs

My Lisbon Holidays — Why real estate in portugal is getting more expensive ? ›

Increased demand: As Portugal becomes an increasingly popular destination for tourism, expats and remote workers, the demand for real estate has been steadily growing, driving up prices.

Property prices in Lisbon are more expensive than in Milan, Berlin and Madrid with a record €5,426 cost per square metre. The capital city, remains a highly desired area to purchase property and rent.

Despite a forecasted deceleration in demand and sales pace, medium-term projections do not foresee a dip in property prices. In the second quarter of 2023, the housing price index in Portugal, as reported by INE, showed an 8.7% increase compared to the same period last year.

Both rental accommodation and houses are expected to see an increase in value throughout 2024, with factors such as foreign investment and a booming tourism industry being the main drivers of growth. House prices in Portugal have experienced steady growth in recent years, driven by strong demand and limited supply.

Is now a good time to buy property in Lisbon? While housing prices are higher, 2024 is a great year for foreign investors to invest in family properties or luxury properties in Lisbon, Portugal. This is due to the significant growth of rental income yields over the past few years.

Potential Pitfall 5: Not Seeking Legal Assistance

One main pitfall to avoid when buying property in Portugal: Don't skip on hiring a lawyer. It's more important than you might think. Saying no to legal assistance might seem like a cost-saving move, but it's a risky venture.

Cheapest towns to buy house in Portugal? The towns of Gavião and Nisa located in the district of Portalegre and Figueira de Castelo Rodrigo in Guarda are the cheapest places to buy property in Portugal, according to Idealista study from June 2023.

Living costs in Portugal are generally more affordable compare to the United States. According to recent Numbeo statistics (as of May 2023), the cost of living in Portugal is, on average, 36.6% lower than in the United States.

As a result of low public investment levels and the absence of strong public policies in the last decade, housing prices between 2012 and 2022 have increased by 120% in the Portuguese capital. Rental prices have also increased significantly, reaching more than 30% in the past five years.

While it's common for sellers to set an asking price, the real estate market in Portugal, like in many countries, allows room for negotiation. Understanding the dynamics of making an offer and negotiating can empower you to secure a better deal and turn your dream home into a reality.

Is buying property in Portugal a good investment? ›

Is buying property in Portugal a good investment? Yes, buying property in Portugal is a great investment. Portugal's real estate market offers a variety of good investment opportunities, whether you want a holiday home, a retirement property, or an investment property to rent out.

London takes first place in the ranking for the third year in a row. Paris is in second place, Madrid is in third. The top 10 promising cities for real estate investment also included: Berlin, Amsterdam, Milan,Munich, Lisbon, Frankfurt, Barcelona.

Portugal House Price Index is at a current level of 211.27, up from 208.48 last quarter and up from 195.91 one year ago. This is a change of 1.34% from last quarter and 7.84% from one year ago.

In Portugal, the price index of housing and commercial properties has increased over recent years, which represents a concern for the Portuguese population. This price hike is influenced by foreign direct investment in the country's real estate sector, which has surpassed one billion euros in 2023.

The prices of houses in Lisbon, except on the outskirts, fell for the first time in two years as the residential property market cooled between July and September, 2023. The average price per square metre for family homes increased 10% like-for-like to €1,641m2.

How much money do you need to live comfortably in Portugal? Compared to some other countries in Europe, Portugal is exceptionally affordable. A couple with a mid-range income can live comfortably in Portugal's cities for around €1,700 per month. A couple in Lisbon can live on around €2,000 per month.

The resale market for properties in Lisbon is generally strong, driven by high demand, tourism, and a vibrant rental market, offering good potential for a return on your property investment. Compared with other European cities, Lisbon has a thriving real estate market.

The cost of homes in Lisbon rose 5.8% in November to a record €5,426 ($5,963) per square meter. After Portugal lured wealthy foreigners with investment incentives, the government is having a hard time putting a halt to the buying frenzy that's propelled housing prices to sky-high levels.

How much money do you need to live comfortably in Portugal? Compared to some other countries in Europe, Portugal is exceptionally affordable. A couple with a mid-range income can live comfortably in Portugal's cities for around €1,700 per month. A couple in Lisbon can live on around €2,000 per month.