by Nick Marr 
Portugal’s property market is experiencing significant growth, with prices projected to rise by 8.7% in 2024. This surge continues the upward trend seen over the past year, where property values increased by an average of 6.5% nationwide. Notably, the Algarve region, renowned for its beaches and golf resorts, has witnessed property values skyrocket by up to 15% over the past year, and some areas, such as Quinta do Lago, are expected to see a further 19% increase by 2025 (Benoit Properties).
In addition to the Algarve, Lisbon and its surrounding areas, including Cascais, Comporta, Estoril, and Sintra, are also experiencing substantial property value increases. This growth is fuelled by a combination of international interest and local development projects aimed at enhancing urban infrastructure and amenities
A critical issue driving up property prices is the shortage of new housing developments. The National Statistics Institute (INE) reported that between 2018 and 2022, ten houses were sold for every new one built, highlighting a significant supply-demand imbalance. This shortage is particularly acute in popular areas, exacerbating the upward pressure on prices
While some experts caution that the market could face challenges due to rising interest rates and economic uncertainties, the overall sentiment remains optimistic. Hugo Santos Ferreira, president of the Portuguese Association of Real Estate Developers and Investors, notes that despite a slight slowdown in demand, the scarcity of supply will likely prevent any significant drop in prices (Reuters).
As Portugal’s property market continues to attract both domestic and international buyers, it remains a key area of interest for investors looking to capitalize on the country’s vibrant and growing real estate sector. The ongoing increase in property values underscores Portugal’s status as a prime destination for real estate investment, driven by its desirable climate, quality of life, and robust economic growth.
For more detailed information, you can visit sources such as The Portugal News,
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