Portuguese Housing Market Survey

“Transaction prices are moving up, responding to continuous demand growth and as a consequence of the lack of new units on sale. This is impacting both buyers’ and sellers’ expectations and is enabling prices to recover in general terms and increasingly outside the historical centres. There is still room for further recovery, as in many locations transaction prices are below pre-crisis levels, despite increasing rapidly. Agents are concerned about the impact that might be caused by potential changes in the legal market framework regarding rental and short-term rental sectors.”

“In line with the euro area average, growth across the Portuguese economy moderated in the early part of the year, as the annual rate eased from 2.4% to 2.1% (the softest since 2016). Nevertheless, temporary factors were at least partly to blame and although expansion may not be quite as strong as last year, 2018 still looks set to deliver a solid outturn. This should continue to provide a supportive backdrop for housing demand.”