Portugal saw new mortgage lending hit €23.3bn in 2025, a 34% jump YoY, led by buyers under 35. Renegotiations fell to €5.5bn, 19% of new loans.
Portugal’s housing market posted a standout year in 2025, with new mortgage loan agreements reaching a record €23.3 billion — the highest level since 2014 — according to the APEMIP Barometer. That total represents a €5.9 billion increase over 2024, an annual rise of 34% from €17.37 billion.
The long-term surge is even more striking: new home loans are up 518% compared to 2015, underlining a multi-year rebound in housing credit activity. Young borrowers played an outsized role in the recovery. Buyers under 35 concentrated roughly 60% of the total amount of new loans for the purchase of permanent housing in 2025, highlighting strong demand among first-time and early-career buyers.
Monthly data also points to steady momentum at year-end. In December 2025, new mortgage lending totaled €2,189 million — a 6% increase year-on-year from €2,064 million in December 2024, and a 6% rise from November’s €2,074 million. Those month-to-month gains suggest the market maintained momentum through the final quarter.
While new lending climbed, mortgage renegotiations slowed markedly. Renegotiated loans amounted to €5.5 billion in 2025, down nearly 24% (about €1.7 billion) from €7.2 billion in 2024. As a share of total new mortgage activity, renegotiations fell to 19% in 2025 from 29% the year before. The decline indicates fewer borrowers sought to revise existing loan terms even as fresh borrowing expanded.
What this means for the market
The 2025 figures point to renewed appetite for home purchases—particularly among younger buyers—rather than refinancing activity. For lenders and policymakers, the data may signal shifting priorities: increased originations tied to housing demand rather than restructuring of existing debts. Market watchers will be watching affordability, supply constraints, and interest rate dynamics in 2026 to see whether the trend endures.
