Portugal Real Estate Market: Sales Decline, Prices Up 7%

Stay up to date with the latest trends in Portugal real estate market with the today update on housing prices, showing a significant 7% increase since the beginning of the year. Explore the impact of decelerating prices on the market.

House prices in Portugal have been on the rise, but recent data shows a slowdown that is impacting the real estate market. According to the National Institute of Statistics (INE), the first quarter of 2024 saw a 7% increase in house prices, the lowest rate of change in the past three years. However, this growth was accompanied by a decrease in the number of sales and transaction value, signaling a contracting market.

The housing price index increased by 7% compared to the same period last year, a lower growth rate than the previous quarter's 7.8%. The gradual slowdown in housing price growth has been observed since mid-last year. New housing prices have seen a 0.8% decrease, while existing housing prices have increased by 1.1%.

In the first quarter of 2024, a total of 33,077 houses were sold in Portugal, amounting to around 6.7 billion euros. This marks the lowest number of sales in a single quarter since the second quarter of 2020, the onset of the COVID-19 pandemic. The total transaction value has also been declining despite the rising prices, indicating a significant market contraction.

Regional variations were observed in the market behavior across Portugal. While regions like the North, Center, and Setúbal saw growth, the Algarve and Madeira experienced declines in sales and transaction value exceeding 20%. The Setúbal Peninsula stood out as it resisted the overall market trend, with an increase in both the number of sales and transaction value.

In the North, the number of sales remained stable, but the transaction value increased by about 5%. In Lisbon, despite a drop in the number of sales, the price increase led to a rise in the total transaction value. On the other hand, the Algarve and Madeira saw significant declines in both sales and transaction volume.

Overall, the real estate market in Portugal is facing challenges with a slowdown in growth and a contraction in sales and transaction value. Regional disparities highlight the varying market conditions across different parts of the country.

While house prices in Portugal continue to rise, the slowdown in growth and the decrease in sales and transaction value indicate a challenging period for the real estate market. Regional variations further emphasize the diverse market conditions across the country.