Anticipated stagnation in Portugal's real estate

The sale of houses is expected to stagnate or decrease in 2024 compared to 2023, according to a survey conducted by the Imovendo Consultancy among investors, property owners, and real estate consultants, whose findings were released earlier this week.

According to the results, 45.8% of the 3,478 respondents who answered admit to stagnation, and 40.7% expect a decrease in home sales this year compared to 2023. Two-thirds (67.8%) believe that there will be a decrease in interest rates, although they remain "too high."

Home sales anticipated to stall or decline in 2024 compared to 2023, per survey.

Regarding 2023, the consultancy notes that the majority of respondents (56.1%) acknowledge that the expectations they had at the beginning of that year "were not met," with 50% admitting that price was the most significant factor in the decision, 31.3% pointing to location, and 12.5% to the condition of the properties.

In the meanwhile, according to the country’s National Institute of Statistics (INE- Instituto Nacional de Estatística), in November 2023, construction costs for new residential buildings are estimated to have increased by 2.5 percent on a year-on-year basis, 1.0 percentage points more than in the previous month. The price of materials presented a variation of -1.8 percent while labor costs rose 8.7 percent.

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