Property News

Lisbon is establishing itself as one of the most attractive luxury real estate markets in the world, attracting more and more international investors who seek a balance between sophistication, quality of life and maximising the value obtained for the amount invested

House prices in Portugal continue to rise, however, there are still areas of the country where it is possible to pick up a bargain.

Rents for luxury residential properties continue to rise around the world, and Lisbon is no exception.

House prices in Portugal rose 4.3% in January compared to the same month in 2024

A total of 19,745 people have benefited from exemption from IMT, Stamp Duty and fees when purchasing their first home, according to data provided to Lusa by the Ministry of Youth and Modernization.

Licenses issued for new construction and renovation of residential buildings grew 6.1% until November 2024, in annual terms, while homes in licensed new constructions increased 3.4% and cement consumption rose 2.8%, according to the AICCOPN.  

Artificial Intelligence (AI) offers transformative solutions to address the pressing need for housing development, especially as urban populations grow and housing shortages intensify worldwide. 

The Libertas Group has officially begun construction of the Lux Garden EVO project in Faro, marked by a groundbreaking ceremony held on January 16. With six floors and 117 units ranging from one to three bedrooms, this ambitious development was designed by architect Tiago Palmela of TIP Studio.

In 2024, Athena Advisers recorded a 40% increase in demand for properties in the French Alps from various nationalities based in Portugal, namely Americans, British, French and Portuguese.

The median housing price in the third quarter stood at 1,819 euros/m2, a year-on-year increase of 10.8%, with increases recorded in 13 of the 24 most populous municipalities, according to the National Statistics Office (INE).

Foreign buyers accounted for around 12% of sales volume in 2024, registering an average annual growth rate of 8% between 2019 and 2024.

Household wages continue to fail to keep up with rising property prices, however, it is proving easier to buy than to rent in some areas of Portugal.

Demand for rental properties in Portugal remains high despite increasing prices.

The median value of bank appraisals for housing increased by 9.3% in 2024 compared to 2023, standing at 1,662 euros per square meter (m2), with all regions registering increases.

Between 2020 and 2024, of 1,312 urban operations evaluated, 94% presented illegalities. 

The secretary general of the PCP, Paulo Raimundo, has argued that in Portugal there is no lack of houses, but rather low wages that do not allow people to buy houses at the prices that are charged.

Illegal properties in the municipality of Loulé are reported to have increased “significantly” in recent years with the council highlighting the possibility of demolitions.

The price per square metre for IMI and property tax assessment purposes will remain unchanged at €665 euros in 2025, making this the third year with the same value.

The supply of houses for rent in Portugal increased by 59% at the end of 2024 compared to the same period in 2023, according to data analysis from idealista.

Interest in premium housing in Portugal is at one of the highest levels in recent years, according to data from idealista.

The Portuguese real estate market registered a growth of 51% in 2024, reaching an investment volume of 2,387 million euros, according to data from Savills. 

Quintela + Penalva real estate agency expects to double the number of North American clients by 2025.

A Portuguese movement wants the Government to tax up to 100% on real estate bought by non-residents, from countries outside the European Union (EU), to be the same as the rules in Spain.

The monthly payment for a home loan rose again last year: it grew 11.5% to €404, the highest value recorded by the INE.