Portugal’s real estate market continues to be a beacon of growth within the European Union, demonstrating substantial capital appreciation over the past year.
According to the European Statistics Office (Eurostat), Portuguese housing prices surged by 3.7% in the third quarter of 2024 alone, placing it second only to Bulgaria’s 3.9% in the EU rankings.
Year-over-year, the nation witnessed a remarkable 9.8% increase in house prices, outpacing the 7.8% and 7% increases of the preceding quarters.
Since 2010, the cumulative growth has been a staggering 113%, reflecting a significant recovery and development from a comparatively low base relative to other European markets like France, Spain, Germany, and the UK.
Statista’s projections further underscore the bullish outlook for Portugal’s residential real estate, anticipating a 5.51% growth from 2025 to 2029, with the market volume expected to reach a whopping US$1.76 trillion by 2029.
The broader Eurozone and EU contexts also show positive trends, with house prices up by 2.6% and 3.8%, respectively, over the same period last year. This performance is notably better than the 1.4% and 3% rises recorded in the second quarter.
Amanda Collison, a market analyst at Property Market-Index, an international real estate trend tracker, commented on Portugal’s unique market dynamics.
“Portugal’s consistent growth in property prices underscores its allure, particularly within the luxury and tourism-driven real estate sectors,” she stated.
“The synergy of a thriving tourism industry, appealing tax policies, and a burgeoning demand for high-end real estate positions Portugal as one of the most resilient markets for both buyers and investors globally.”
Despite robust growth, the demand for more affordable housing persists. Over two decades ago, Portugal built over a million homes, but recent figures have dwindled to around 30,000 new homes.
With roughly 723,000 vacant houses, representing about 12.1% of the total housing stock, the Property Market-Index sees significant potential for governmental action in future housing initiatives.
In contrast, some EU countries have seen declines, including France (-3.5%), Finland (-2.8%), Luxembourg (-1.7%), and the UK (-2%). Meanwhile, nations like Bulgaria, Poland, Hungary, Croatia, and the Netherlands have enjoyed double-digit growth.
According to the Canadian Real Estate Association (CREA), the U.S. reported a 2.6% increase in property prices internationally, while Canada saw a 2.5% rise.
The nation’s favourable climate, vibrant culture, and economic prospects make it a top choice for residency and investment,” he remarked. These statistics reinforce Portugal’s stature as a prime player in Europe’s real estate arena.