Portugal’s real estate market is witnessing a remarkable surge in home purchases by young buyers under the age of 35. According to a recent study by ERA Portugal, property purchases by this age group have soared by an astonishing 59% from 2023 to the present, significantly reshaping the country’s market dynamics.
Government Incentives Spark a Buying Frenzy Among Young People
This dramatic increase is largely attributed to targeted government measures introduced in May 2024 to help young people enter the property market. The package included tax exemptions on IMT and IS, as well as the creation of a public guarantee to make housing more accessible for those up to 35 years old.
The impact was both swift and striking: data from ERA Portugal reveal that, following the implementation of these policies, there was an immediate 28.4% jump in purchases by under-35s compared to 2023. After the incentives came into practical effect, another milestone was reached—an additional 233 qualified young buyers successfully secured homes, the highest absolute growth among all age demographics.
As the reforms became fully established in 2025, growth among this age group remained robust, with purchases still up by 24% from the previous year.
Interest Rates Stabilize, But Supply Under Pressure
The surge in demand from young buyers coincided with a period of stable interest rates, further boosting confidence in the housing market. However, this influx of new buyers has intensified pressure on the already limited housing supply, especially in hotspots like Lisbon, Porto, and popular tourist regions along Portugal’s coast.
As a result, the marketplace has grown even more competitive, with rising demand driving up average property prices and further tightening the squeeze on available listings.
Expert Insights and Market Outlook
According to ERA Portugal, “The measures to support young people have not only increased the interest of this segment, but have also reduced part of the barriers associated with financial effort. These signs show a layer of the young population that, today, is more active, more mature, and closer to the decision.”
Yet, while the government’s policies have opened new doors for Portugal’s younger generation, the increased demand has only amplified the urgent need to streamline construction and expand housing supply. Without new development and efficient processes, the risk of escalating prices and a supply crisis looms large for the market in 2025 and beyond.
Looking Ahead
For young people in Portugal dreaming of homeownership, the current environment offers real hope—with easier access and fewer financial barriers, thanks to targeted incentives. However, competition remains stiff, especially in the country’s most desirable areas.
If you’re considering buying your first home in Portugal, now might be the time to act before prices climb even higher. Stay tuned for more updates as Portugal’s real estate market continues to evolve.
