The latest Portuguese Housing Market Survey from RICS and Confidencial Imobiliário has shown “stability and positivity” to be at the core of the country’s property market. The September 2024 report reveals that house prices have edged up, while both demand and promised sales have struggled.
House price growth experienced “a significant uptick in momentum” during the month, with the net balance rising from +10% in August to +24% in September. Looking ahead to the next three months, the net balance of survey respondents anticipating a price increase jumped from +9% in August to +17% in September. Sales expectations have also shot up by 10 percentage points.
Figures from idealista underpin the picture of stability, showing a 9.4% rise in house prices in Portugal in the year to October 2024. Of the country’s largest cities, Faro in the southern Algarve region led house price growth in October, with an increase of 4.1 %.
The RICS/CI report points to three-month sales expectations increasing in urban areas such as Lisbon and Porto. Both cities benefit from excellent and affordable connectivity to the UK, as does the Algarve. There, Kronos Homes is witnessing the on-the-ground impact of strengthened sales volumes and expectations. The company’s latest launch – a beautifully renovated collection of homes at the coastal Flamingos Salgados development in the central Algarve, saw 40% of properties sold pre-launch.
In addition to domestic Portuguese buyers, foreign interest in the Algarve is keen. Engel & Völkers’ latest Market Report Portugal points to high levels of investment in the region from German, British and Belgian buyers, while Kronos Homes is also seeing strong interest from buyers in North America. At its picturesque Salema Beach Village development, 50% of properties have sold to buyers in the US and Canada.
Second homes on resorts, such as the Algarve’s prestigious Vale do Lobo, are also tipped to experience strong demand in 2025.
In a global context, Portugal is also performing well. Knight Frank’s analysis of house prices in 56 countries in the year to June 2024 saw an overall increase of 3.3%, with 74% of markets recording price increases. Portugal ranked 16th in terms of its price increases, positioning the country ahead of the global average.
If you are looking to buy a property in Portugal or Spain and need a mortgage, email mark@vci-network.com for the latest criteria