Portugal house prices have surged by 9.8% in the third quarter, reflecting a vibrant real estate market. With 40,909 transactions recorded, the total value of property sales reached nearly 9,100 million euros, showcasing a robust demand for housing in the region.
In the third quarter of 2024, Portugal’s real estate market experienced a notable surge, with house prices escalating by an impressive 9.8% compared to the same period in the previous year. This increase, which is not merely a blip on the radar, reflects a broader trend of heightened demand and economic vitality within the sector.
During this quarter, a staggering 40,909 transactions were executed, marking a robust 19.4% increase from the corresponding quarter of 2023. The total value of these transactions approached a remarkable 9,100 million euros, representing a substantial 28% rise year-on-year. Of this total, the lion’s share—approximately 6,500 million euros—pertained to used dwellings, which saw a commendable increase of 30%. In contrast, new dwellings accounted for 2,600 million euros, reflecting a growth of 21.6%.
Delving deeper into the data, it is noteworthy that households were responsible for 35,462 of these transactions, constituting 86.7% of the total volume and amounting to a value of 7,700 million euros, or 85.4% of the overall transaction value. Meanwhile, foreign buyers, those with tax domicile outside Portugal, purchased 2,655 properties, which represents a slight year-on-year decline of 3.1%.
The growth trajectory of existing dwellings outpaced that of new constructions, with price increases of 10.5% and 8.1%, respectively, indicating a robust market for established properties. The National Statistics Institute (INE) reported that the average annual rate of change for the Housing Price Index (HPI) reached 8.1% in this quarter, marking the first increase since the third quarter of 2022, with a modest rise of 0.5 percentage points from the previous quarter.
In terms of comparative analysis, used dwellings recorded an annual change of 8.7%, while new dwellings exhibited a more subdued increase of 6.8%. The house price index itself saw a quarterly rise of 3.7%, with used houses becoming 3.8% more expensive and new houses increasing by 3.3%.
Moreover, the value of transactions surged by nearly 15% compared to the preceding quarter, with new houses witnessing a remarkable 19.8% increase and used houses rising by 13.1%. Geographically, the North and Greater Lisbon regions dominated the transaction landscape, collectively accounting for nearly 50% of all transactions—10,407 and 7,949, respectively. This marks the highest concentration since the first quarter of 2021.
In Greater Lisbon, transaction volumes reached an impressive 3,000 million euros, representing 32.6% of the total, while the North region contributed 2,300 million euros, or 25.4%. The Setúbal Peninsula also made its mark with 3,938 transactions, reflecting a year-on-year growth in its relative weight of 0.5 percentage points, totaling 891 million euros, which corresponds to 9.8% of the national transaction volume.
The Portugal’s real estate market is not just thriving; it is flourishing, with a complex interplay of factors driving prices and transactions to unprecedented heights. As we navigate this dynamic landscape, one can only wonder—what will the next quarter bring?
