Portugal Residential Market Dynamics, Q3 2024
Summary and analysis of Portugal's current residential real estate market conditions.
- Nuno Silva
- Manuela Chen
The recent reduction in ECB rates is supporting the residential sales market, with noticeable results both in transactions and prices. The persistent supply-demand imbalance supports continued future price growth.
Renewed demand is driven by falling interest rates and new housing policies to support first-time buyers. There has been a 6.7% increase in household transactions from July to September compared to the second quarter.
High asking rents (€20.6 per sq.m. in Lisbon) are leading to increased caution among property owners, with some of them reducing rents primarily for used units. While this may be a temporarily rental market adjustment, long-term trends still point to rising prices.
