Portugal’s Housing Market Set for Strong Growth
The Portuguese housing market has demonstrated remarkable resilience, closing 2024 on a high note with strong expectations for the year ahead, according to the December 2024 Portuguese Housing Market Survey from RICS and Confidencial Imobiliário. The report highlights an 11% annual increase in property prices and a 27% surge in sales volumes, reflecting the market’s robust performance.
According to Idealista, Ricardo Guimarães, Director of Confidencial Imobiliário, attributes the rising demand to declining interest rates and strong buyer activity. He notes that both families and investors have swiftly capitalised on shifting market conditions, driving a significant increase in transactions.
In the Algarve, Portugal’s top destination for international buyers, Kronos Homes has witnessed strong demand firsthand. Alda Filipe, the firm’s first female Partner in Portugal, points to growing interest across the region. “Buyers from around the world are securing everything from beachfront apartments to spacious villas,” Filipe says. “Off-plan homes are particularly sought after, which is why we’re investing over 200 million euros in new luxury residences in Vale do Lobo, one of the Algarve’s most prestigious resorts.”
Rising demand, falling interest rates, and strong economic performance drive optimism for the year ahead.
Beyond international demand, solid domestic interest continues to bolster the housing market. Tarrant Parsons, Head of Market Analytics at RICS, explains that Portugal’s robust economy—driven by both domestic growth and a thriving tourism sector—positions the country to outperform the broader Eurozone in 2025. “With macroeconomic pressures easing and policy rates expected to decline, Portugal is well-placed to sustain its strong performance,” Parsons states.
The latest survey also reveals increased buyer interest, with new inquiries rising by 6% in December 2024. Looking ahead, market experts anticipate continued strength in sales and pricing throughout the first quarter of 2025.
“Expectations for 2025 are highly positive,” Filipe adds. “Demand spans all property types in the Algarve, and we foresee another strong year for the market.”
With momentum building, Portugal’s housing sector is set for further growth, driven by both domestic and international demand, making 2025 an exciting year for real estate.
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