The Portuguese real estate market

The slowdown in construction reached every region. It came partly from a focus on urban regeneration, a slower and more complex process, and partly from tighter financing for the construction sector after the financial crisis, which reduced the sector’s capacity. The housing stock is ageing, with more rehabilitation and less new construction.

There are more one-person households, couples without children and single-parent families, with a 14% drop in the average number of people per household since the beginning of the century. Between the 2011 and 2021 Census, the population of the Lisbon metropolitan area grew by 1.7% and that of the Porto metropolitan area fell by 1.3%. Together, these factors increased demand.

Demand for housing has grown significantly, especially in Lisbon and Porto, putting pressure on prices. House prices have risen faster than wages, and this also affects the rental market, one of the main sources of income for property investors.

Confidencial Imobiliário, INE and Fundação Francisco Manuel dos Santos policy paper.