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Portugal: house prices continue to increase, despite falling demand

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The economic slowdown has not yet affected the most important parameter for buyers

What has happened

According to the analytical portal Global Property Guide, the average property prices in Portugal have increased by 7.04% during the year to April 2024, reaching €1,596 per square meter. However, adjusted for inflation (in real terms), house prices have increased by only 4.74% year on year.

Dwelling prices have been continuously rising strongly in the past several years - increasing by about 9.2% annually from 2017 to 2023.

Despite the slowdown in growth, property prices in some regions of the country have increased significantly:

  • Grand Lisbon: +4.9% (+2.6% in real terms)
  • North: +9.1% (+6.7% in real terms)
  • Center: +11% (+8.6% in real terms)
  • Oeste and Vale do Tejo: +12.4% (+10% in real terms)
  • Setúbal: +6% (+3.7% in real terms)
  • Alentejo: +13.4% (+10.9% in real terms)
  • Algarve: +1.3% (-0.9% in real terms)
  • Azores: +19.7% (+17.1% in real terms)
  • Madeira: +16.8% (+14.3% in real terms)

Apartment prices increased by 6.1% year on year, and house prices by 9.8%.

Demand and construction

During 2023, the total number of housing transactions in Portugal fell sharply by 18.7% to 136,499 units from a year earlier,

Despite this, the housing construction activity continues to grow, with building permits up 6% in 2023 and Dwelling completions up 6.8%.

Economy

Portugal's economy has slowed to 2.3% in 2023 from 6.8% in 2022. The economy is expected to grow by 1.7% in 2024 and 1.9% in 2025.

Source: Global Property Guide

Photo by Michal Hajtas on Unsplash

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Portugal: house prices continue to increase, despite falling demand

The economic slowdown has not yet affected the most important parameter for buyers

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