Are property prices going up in Portugal?

" The house price index in real terms continued to rise in Portugal until the second quarter of 2023 , while in the euro area it fell from the first quarter of 2022 onwards," says the BdP. INE data shows that house prices in Portugal rose by 8.7% year-on-year in the same period.

Is it a good time to invest in real estate in Portugal?

Portugal's real estate market is becoming very attractive to global investors in recent years, given its stability and potential growth . Lisbon, Porto or the Algarve region are areas of great interest that have experienced an increase in property values.

Is there a housing crisis in Portugal?

FeatureFaced with soaring rents in the Portuguese capital overrun by tourists, an increasing number of employees and workers, often foreigners holding low-wage jobs, are settling in tents on the outskirts of the city.

Why is everyone buying land in Portugal?

There are many reasons why buying property in Portugal is a wise investment. The country offers an excellent quality of life, stunning scenery, and a relaxed lifestyle. Lisbon, the capital of Portugal, is one of the oldest cities in Western Europe. The city is famous for its scenic location, rich culture, and history.

What is the real estate outlook for Portugal in 2024?

The Portugal property market outlook for 2024 is therefore promising. Demand continues to outweigh supply, driving price growth across Portugal's housing and rental market . Meanwhile, a booming tourism industry and strong demand from both short and long-term tenants are creating lucrative opportunities for investors.

Is Portugal in a property bubble?

However, the DBRS agency says there is no housing bubble in Portugal .

What are the pitfalls of buying a property in Portugal?

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.

Where is the best place to own property in Portugal?

Which region should you choose? It makes sense to consider buying a property on the Algarve coast as this is a popular destination due to the climate, beaches and culture. If you want to experience life in a beautiful coastal area where many other foreigners have bought a home, the Algarve is for you.

Why are property prices so high in Portugal?

Along with a lack of new homes, the surge in demand from abroad has propelled prices to levels that are out of reach for many locals in the capital Lisbon. Residential property prices are now higher than in Milan, Madrid and Berlin, according data monitored by Bloomberg.

Are house prices going to drop in Portugal?

House prices in Portugal are expected to fall by 2.1% in 2024 , says CaixaBank. A study suggests that the number of sales will fall more than 20% short of the 2022 figure this year and that this low level will persist in 2024.

What is the trend in property prices in Portugal?

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.

Is it a good investment to buy a house in Portugal?

Buying real estate in Portugal is one of the best things that you can do right now . It has grown by leaps and bounds over the years. This European country is considered to be one of the best places to retire in the world. Today, property values in Portugal are at a level that makes it an ideal place for investment.

Portugal property prices continue to rise (2024)

According to the property price index published by idealista, nine of Portugal´s district capitals saw an increase in average house prices in May. Prices did, however, stabilise in Lisbon and Porto.

By Emma Pengelly, in News, Portugal, Property · 03 Jun 2023, 18:02 · 0 Comments

Portugal property prices continue to rise (1)

Stabilisation

Various factors, including the impact of inflation on purchasing power and increased mortgage interest rates, have contributed to a slowdown of the upward trend in house prices witnessed in Portugal over recent years.

These are likely to have contributed to the stabilisation of property prices seen in May in many places across Portugal, with overall figures closely aligning with those reported in April. According to this report, as of the end of May, the average cost of property across Portugal rests at €2512 per square metre (m2).

Up and down

Among the nine district capitals in Portugal that saw a rise in property prices, the greatest increases occurred in Viana do Castelo (9%), followed by Vila Real (6.6%), Faro (4.1%), and Coimbra (2.8%).

Prices remained stable in Lisbon (0.3%), Ponta Delgada (0.1%), Porto (0.1%) and Castelo Branco (-0.3%), with a slight decrease in average house prices being noted in Portalegre (-2%), Santarém (1.8%), Braga (-1.4%), Aveiro (-1.3%), Guarda (-0.7%) and Beja (-0.7%).

It is important to note, however, looking at a year-on-year comparison, property prices in Portugal have seen an increase of 6.5%.

Lisbon and Porto

To no surprise, Lisbon remains at the top of the list, with property costing an average of €5301/m2. The capital was followed by Porto (€3390/m2), Funchal (€2917/m2), and Faro (€2796/m2). Aveiro, Setúbal, and Évora also were high in the ranking, being listed as some of the most expensive cities to purchase property in Portugal.

On the flipside, Portalegre (€705/m2), Guarda (€795/m2), Castelo Branco (€828/m2), Bragança (€891/m2), and Beja (€949/m2) came through as the most economical cities in Portugal, with the lowest average house prices in the country.

In terms of regions, the biggest increases in property prices were seen in Viana do Castelo (4.1%), Porto Santo Island (3.9%) and Coimbra (3.8%). The regions of Porto (0.4%), Lisbon (0%), and São Miguel Island (-0.1%) saw prices stabilise. Pico Island (-2%), Braga (-1.1%), Terceira Island (-0.9%), Aveiro (-0.9%), and Vila Real (-0.6%) saw a drop in average property prices.

Whilst rising inflation and mortgage rates, alongside changes in housing laws, have impacted the rise in the cost of housing to a certain point, the demand for property, especially in urban hubs and tourist hotspots, still outweighs the current supply. The level of demand from both domestic and international buyers is likely to continue to grow.

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