Portuguese real estate market is still buoyant

Portuguese real estate market is still solid and buoyant albeit the issuance of building permits has decreased.

According to a press advisory by the National Statistics Institute - INE (Instituto Nacional de Estatística), in Q4 of 2021, there were only 5600 licensed buildings permits issued, which corresponded to a decrease of 4.7 percent reduction in comparison with the same period of the previous year (+2.2% in the 3rd quarter of 2021) and a decrease of 6.0% when compared with the same quarter in 2019.

Building permits for new constructions decreased by 0.5% (+5.4% in 2021 Q3) and registered a nil rate of change when compared with the Q4 of 2019. Renovation permits declined by 11.7% (-5.4% in the 3 rd quarter of 2021), i.e., an 18.3% decrease vis-à-vis the Q4 of 2019. The number of completed buildings increased by 2.0% (+5.5% in the 3 rd quarter of 2021) and by 3.8% compared to the Q4 of 2019, amounting to 3900 buildings.

While Building permits decreased in the last quarter, but 2021 annual results are the highest of the last decade.

However, property portal Idealista claims, based on the opinion of real estate pundits, that the real estate market in Portugal will continue remaining dynamic and therefore evolve positively.

Quoting Jorge Bota, partner in a Lisbon-based estate agency, "2022 could be a golden year for Portuguese real estate, with positive performances in all sectors, even if at different paces. If there are no unforeseen situations, this year will be a relevant milestone for the sector and for the Portuguese economy”.

In an press note sent to the media, Bota further accentuated that "the panorama of uncertainty is beginning to dissipate around the pandemic”. However, despite the current dangerous escalation of the war in Ukraine by Russia, Bota is of the opinion that the real estate market is particularly buoyant at the moment, and noted that "the solidity of the real estate market is maintained and continues to progress at different speeds"

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