In a notable trend within Portugal’s real estate market, young people aged 35 and under have made a significant impact on the housing finance landscape, accounting for 59% of new mortgage agreements in the first eight months of 2025. This figure represents more than double the amount recorded during the same period last year, according to data from the Bank of Portugal.
Factors Behind the Rise
The surge in housing credit among young individuals can be attributed to various support measures implemented by the government. Notably, exemptions from the Municipal Tax on Property Transfers (IMT) and Stamp Duty, along with personal guarantees from the State, have played a crucial role in easing access to homeownership for younger buyers. These initiatives have created a more favorable environment for first-time homebuyers, allowing them to navigate the challenges of entering the property market.
Impressive Credit Growth
From January to August 2025, the total amount of credit for permanent housing reached an impressive €12 billion, with young people securing €7.1 billion of that total. This significant share highlights the growing financial empowerment of younger generations in Portugal. Additionally, the average value of loans taken out by this demographic has surged by 43% since the end of 2023, now standing at €192.6 thousand. This increase reflects both rising property prices and a greater willingness among lenders to extend credit to younger borrowers.
The Impact on the Housing Market
As more young people enter the housing market, their influence is expected to shape the future of real estate in Portugal. The increased availability of credit and financial support measures are likely to spur demand for housing, potentially driving up property prices further. This trend also underscores the importance of addressing housing affordability, as the growing financial burden may pose challenges for young buyers in the long run.
The remarkable rise of young people in Portugal as a dominant force in new housing credit is a promising development for the country’s economy and real estate market. With supportive measures in place, young buyers are seizing the opportunity to invest in their first homes, contributing to a dynamic housing landscape. As this trend continues, stakeholders in the real estate sector will need to pay close attention to the evolving needs and preferences of younger generations, ensuring that housing remains accessible and affordable for all.
