Find your new life
With 300 days of sunshine per year, stunning beaches, fresh cuisine, vibrant cities, extraordinary cultural heritage, and warm-hearted locals, Portugal continues to attract the attention of real estate investors from around the world. The end of tax advantages and the Golden Visa for real estate investment have not diminished the interest of buyers seeking more than just a financial investment: it’s the pleasant lifestyle, obvious hospitality, and undeniable quality of life that continue to fuel the allure of this blue country!
In 2024, the Portuguese real estate market is distinguished by fascinating dynamics, characterized by interesting investment opportunities and notable trends. Whether you are considering buying a second home, moving for retirement, or simply investing in real estate, understanding the latest news, prices, and market trends is essential for making informed decisions. In this article, we will explore the key elements of the real estate market in Portugal, highlighting the factors influencing prices, the most sought-after regions, and future prospects.
What Does the Real Estate Market in Portugal Look Like in 2024?
The Portuguese real estate market has been experiencing phenomenal growth for over a decade, dating back to the launch of various measures to boost the Portuguese economy and real estate market. Between the Golden Visa for real estate investments and the NHR status that exempted foreigners from taxes, many flocked to the western Iberian Peninsula to realize their dream of a sunny life.
In 2023, faced with the exponential rise in sale and rental prices of real estate, which made housing inaccessible to some Portuguese households, the government decided to lift these advantages to curb inflation.
Although the golden years for foreign investors in Portugal seem to be over, the country remains a true paradise and a promise of a new life by the sea, in lands filled with orange and olive trees, or in the heart of vibrant, cultural cities.
This brings us to 2024, where despite rising prices and government decisions regarding the end of a favorable tax regime, the real estate market remains as dynamic as in previous years, with variations depending on neighborhoods, types of properties, and cities!
Price Per Square Meter in Portugal
Following the various measures implemented to boost the Portuguese economy and real estate market in the early 2010s, the price per square meter in Portugal soared! Investors, seeing both a great real estate opportunity and a chance to spend vacations or retirement in a particularly privileged place, jumped at the chance to invest in Portuguese real estate.
Today, while some neighborhoods in major cities like Porto or Lisbon, or upscale seaside resorts like Cascais display per square meter prices close to those of much more expensive European capitals, other locations still present excellent investments.
The median price for a house in Portugal in 2024 is around €1,900/m² and €3,300/m² for an apartment.
Over the past ten years, the Portuguese real estate market has undergone significant changes, marked by notable price growth and increased attraction for international investors. After the 2008 financial crisis, the sector began a slow recovery, reaching a turning point around 2014 with the introduction of the Golden Visa program, which attracted many foreign investors.
Lisbon and Porto saw their city centers revitalized through urban renovations and increased short-term rentals, mainly via platforms like Airbnb. This surge in demand led to a significant increase in real estate prices, making home ownership more difficult for locals. Simultaneously, the government implemented measures to encourage the renovation of old buildings and regulate the rental market.
The Portuguese real estate market continues to grow, supported by stable political conditions, a relatively low cost of living, and a high quality of life, despite ongoing challenges related to affordability and housing supply for local residents.
If you are looking to buy real estate in Portugal, there are several simple and effective ways to find your dream home!
For your searches, use real estate platforms like Green-acres, which list many ads translated into 21 languages. The advantage of these platforms is that they bring together numerous agencies, ensuring you don’t miss out on a gem!
If you don’t want to do the searches yourself, hire a home hunter. They will sift through properties based on your criteria and present you with pre-selected options.
The last option is to visit the country directly and check local agencies or even for-sale signs! For this option, it’s best to speak Portuguese well.
Remember that when buying abroad, it is highly recommended to hire a lawyer to verify all documents. When buying abroad, it is preferable to take all possible precautions to avoid unpleasant surprises.
There is obviously no single answer to this question! To know where you want to buy, it is important to first define why you are looking for a house in Portugal.
If you are looking for a real estate investment, prioritize tourist areas with high rental potential like Porto, Lisbon, or Faro. Although prices are higher, properties quickly become profitable.
If you want an urban and dynamic life, look at the cities of Porto and Lisbon, but also their surrounding areas, which offer great real estate opportunities and a very pleasant living environment.
For the beach, aim for the north and south coasts of Lisbon or the Algarve.
If you want to stay connected to your home country, choose a location close to an international airport: Lisbon, Porto, Faro.
If you seek a quiet house in an authentic Portugal with more affordable real estate prices, target the inland areas. Often covered with vineyards in the north and olive groves in the south, the Portuguese countryside offers a sweet and tranquil life.
Finally, if you are looking for a paradisiacal side, do not overlook the beautiful islands of the Pacific: the Azores archipelago and Madeira archipelago.
In 2024, the Portuguese real estate market presents a rich and diverse panorama, offering unique opportunities for buyers and investors. Despite global economic fluctuations, Portugal remains an attractive destination due to its enviable living environment and continuous growth potential. Whether you are looking for an idyllic vacation home, a peaceful retirement place, or a profitable investment, the Portuguese real estate market deserves particular attention. By staying informed of the latest news, trends, and price developments, you will be better prepared to navigate this dynamic market and make the most of your real estate investments in Portugal.
Photo: Casa Iberia Imobiliario on Green acres
