After an average rise in prices of 6.5% across Portugal over the past twelve months, experts are expecting home prices to continue to rise into 2024—with Property Market Index estimating an 8.7% average growth in the coming year.
Despite the cessation of the Golden Visa program, Portugal’s home prices are set to soar, painting a picture of a resilient and flourishing property market. We explore some of the reasons behind the country’s outstanding growth.
The Algarve Surges in Value
The Algarve region, particularly Quinta do Lago, is anticipated to be a leading property hotspot. Property values in this area have already seen a remarkable rise of over 28% since 2020 and are expected to climb an additional 19% by 2025. This surge in value highlights the Algarve’s strong appeal to property investors and homebuyers.
Growth Near the Capital
Besides the Algarve, Lisbon and its surrounding towns are also experiencing an increase in property values. These areas are benefiting from a combination of international investment, urban regeneration, and tax incentives targeted at affluent expatriates.
Lack of Development Drives Up Costs
A crucial driver behind these soaring prices is the scarcity of new developments. Across Portugal, the rate of new constructions is not keeping pace with the demand, leading to a natural price escalation. This trend is particularly pronounced in sought-after areas, where the balance of supply and demand is noticeably skewed. Between 2018 and 2022, for every new house built, ten were sold, highlighting the growing scarcity of housing stock.
Golden Visa Changes
The end of the Golden Visa is unlikely to have an effect according to Mansion Global.
The recent amendments to Portugal’s Golden Visa Program, which are part of the “More Housing” bill, are not expected to negatively impact property values. The Property Market Index report asserts that home prices will continue to rise regardless of these changes, suggesting a robust and resilient property market in Portugal.
As we gaze into the 2024 horizon, the Portuguese property market emerges as a promising option for investors and homebuyers alike. With regions like the Algarve and Lisbon showing strong growth potential and a nationwide trend of limited new developments, the stage is set for a continuing rise in property values. This growth trajectory, undeterred by regulatory changes such as the end of the Golden Visa program, marks Portugal as a standout destination in the global real estate landscape.
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