Where Are Housing Prices Going in Portugal? We are at the top, but there is also the other side of the issue

Those who follow the markets closely know that owning a house or signing a lease in Portugal is becoming more difficult day by day. The latest Global Housing Index published by Knight Frank also confirmed this situation with figures. In the first quarter of the year, we became the 4th country in which housing prices increased the most among 55 countries. While things tend to slow down a bit around the world, our brakes are still running smoothly.

What Do the Numbers Say?

Prices increased by 16.5% in the first quarter compared to the same period last year. The real increase adjusted for inflation is 13.4%.

We are going through a period where people across Europe are taking responsibility and prices are multiplying; In fact, while the global average remains at only 1.4%, it is remarkable that we are much higher than this rate. We are in fourth place on the list after Türkiye, Hungary and North Macedonia. While prices in China or Canada are moving downwards, our market is doing its own thing. Carlos Penalva, a partner at Quintela + Penalva, attributes this to the fact that demand is still very resilient and supply remains limited. The interest from both local and foreign buyers in quality real estate does not stop.

The Other Side of the Coin: Is Happiness the Same for Everyone?

On paper, the numbers show that real estate owners have increased their wealth, yes. For those who already own property, the situation may seem attractive. However, when we look at the reality on the street, the situation changes.

On social media and in daily conversations, everyone suffers from the same problem: Portugal has become more than a luxury for those who want to settle here. It is said that average house prices in some municipalities exceed 750,000 euros, while the countrywide average exceeds 400,000 euros. While the government is trying to keep young talents in the country, it is also thinking about how to deal with this housing crisis. If the increase in supply cannot keep up with the demand, a very difficult situation awaits us in the future.

Source: LUSA / Knight Frank (Natasha Donn news)

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