Portugal\\\'s Housing Market Sees 18.7% Decline in Sales

Dive into the latest report by the National Statistics Institute revealing a sharp 18.7% drop in house sales in Portugal, hitting a low not seen since 2017.

In 2023, the real estate market in Portugal experienced a decrease in the number of accommodation units transacted, with just over 136 thousand units changing hands. This represents an 18.7% reduction compared to the previous year and marks the lowest record since 2017. Despite the decline in sales, house prices in Portugal continued to rise, driven by a persistent lack of supply of affordable housing options for families.

Portugal's Housing Market Sees 18.7 percent Decline in Sales

According to the Portuguese statistics office, the median price of family accommodation in Portugal reached 1,611 euros per square meter in 2023, reflecting an 8.6% increase from the previous year. Unsurprisingly, the municipality of Lisbon boasted the highest housing prices in Portugal, with an average of 4,167 euros per square meter. Additionally, 50 municipalities across Portugal reported median house prices higher than the national average, with concentrations in regions such as Algarve, Greater Lisbon, Península de Setúbal, and the Porto Metropolitan Area.

Notably, the median housing prices in the sub-regions of Greater Lisbon, Algarve, Península de Setúbal, the Autonomous Region of Madeira, and the Porto Metropolitan Area all exceeded the national average, indicating a trend of rising property values in key areas of the country. Despite the challenges posed by the current market dynamics, the demand for housing in Portugal remains strong, driving continued growth in property prices.

The real estate market in Portugal is characterized by a combination of declining sales volumes and rising property prices, fueled by a persistent imbalance between supply and demand. As the country grapples with housing affordability issues, stakeholders in the real estate sector are faced with the challenge of addressing the needs of prospective homebuyers while ensuring sustainable growth in the market.