Portugal’s real estate auctions have decreased by 50% in five years, yet average prices surged 63% to €118,000 in 2024. Discover what’s driving this trend, auction demand, and the outlook for investors and homebuyers.
Portugal Real Estate Auctions: Fewer Properties, Higher Prices
Portugal’s property market continues to break records with soaring prices, but one segment is seeing a significant shift: judicial real estate auctions. According to data revealed by Diário de Notícias, between 2019 and 2024, the number of properties sold through the online platform e-Leilões fell by half. Yet, despite fewer homes up for grabs, competition remains fierce and prices are rising sharply.
Fewer Defaults, Fewer Auctions
The primary driver behind the decline in auctioned properties is the steady decrease in mortgage defaults. In 2024, banks opened 50% fewer default risk cases compared to the previous year, highlighting increased stability in the housing loan segment. As a result, in 2019 there were about ten thousand properties auctioned, but this number dropped to just over five thousand by 2024.
Average Auction Price Surges 63%
While auction volumes dropped, prices soared. The average price of a property sold at auction jumped by 63% since 2020.
- 2020: €72,000 average per property
- 2024: Close to €118,000 average per property
These figures echo the wider trend of surging property values across Portugal—a country increasingly popular with both local buyers and international investors.
Online Auction Demand Remains Strong
Despite a shrinking supply, demand is undimmed. In 2024, nearly 117,000 bids were placed online, demonstrating ongoing enthusiasm for investment properties, distressed assets, and unique deals found in judicial sales.
By mid-August 2024 alone:
- Over 3,200 properties were already sold
- Sales totaled nearly €268 million
What Does This Mean for Buyers and Investors?
Portugal’s judicial auction market is in transition:
- Fewer distressed sales: Indicates economic and financial stabilization, with fewer households defaulting on mortgages.
- Higher auction prices: Parallels rising property values nationwide, making even auction deals more expensive.
- Intense competition: With fewer assets, each listing attracts more bidders, pushing up prices further.
For buyers, especially investors seeking bargains, the current landscape means greater competition but also added reassurance regarding market strength. For homebuyers, the continued price increases reflect broader affordability challenges—but also the enduring appeal of Portuguese real estate.
Outlook: What’s Next for Portugal’s Auction Market?
While the volume of judicial auctions may continue to dwindle as fewer defaults occur, demand is likely to stay robust. As average values continue rising, auctions will remain an essential barometer for the health and direction of Portugal’s property market.
Bottom line:
Portugal’s real estate auction market is smaller but hotter than ever, with fewer opportunities, stiffer competition, and soaring prices—backed by a national real estate sector that’s showing no signs of cooling.
