Portuguese Real Estate Trends: How House Prices are Preventing People from Moving

Discover why 55% of Portuguese people are giving up on buying and renting real estatedue to high prices, and how this trend is impacting the real estate market.

The Real Estate Observatory, by Century 21, has reported a significant shift in the reasons why Portuguese people are giving up on buying and renting real estate. In 2018, the main reason was the inability to find what they were looking for, but now, the primary factor is the price. A staggering 55% of applicants who gave up on buying and renting real estate cited financial reasons as their motivation. This is followed by 23% who felt it was not the right time, and 18% who simply could not find the property they desired.

This trend is particularly pronounced in the Lisbon Metropolitan Area, where 51.2% of individuals are deterred from buying and renting real estate due to the high cost of housing. The economic factor remains the top reason for people choosing not to purchase a house, followed closely by the timing not being right to make a property investment.

The demand for T2 and T3 apartments continues to dominate the market, but the majority of buyers and renters are actually seeking T3 properties. However, due to budget constraints, many are forced to settle for T2 apartments. Additionally, the study found that the actual prices of properties are 4% lower than what the Portuguese believe they can afford, and rental prices are similar.

As a result, individuals are having to make adjustments in terms of their housing priorities, with a growing emphasis on the importance of patios and gardens. The study also revealed a greater desire among 30-39 year olds to change cities, with detached houses attracting more demand.

The Real Estate Observatory's findings highlight the significant impact of financial considerations on the housing market in Portugal, particularly in the Lisbon Metropolitan Area. The shift in reasons for giving up on buying and renting real estate underscores the challenges faced by individuals in finding affordable housing that meets their needs and preferences.