In the first quarter of 2024, the Portuguese property market demonstrated a mix of stability and regional variations in terms of both the volume and value of transactions. Key regions such as Greater Lisbon and the North saw modest increases in their relative market shares, indicating ongoing demand and potential growth opportunities. Specifically, Greater Lisbon accounted for 32.5% of the total value of dwellings sold, marking a slight year-on-year increase of 0.7 percentage points. Similarly, the North region’s share increased by 1.6 percentage points, now representing 25.1% of the total market value.
On the other hand, the Algarve experienced the most significant reduction in market share, dropping by 2.9 percentage points to 10.9% of the total market value. This decrease suggests potential challenges or a cooling period in this traditionally popular region for real estate investments. Additionally, regions such as the Autonomous Region of Madeira also saw minor declines in their relative market shares, indicating potential volatility or shifts in investor preferences.
Moreover, the overall number of house transactions in the country fell by 3.1% year-on-year, highlighting a slight contraction in market activity. Transactions involving buyers with tax residence outside Portugal decreased notably, with the European Union category experiencing a 22.1% decline. This trend may reflect broader economic conditions or specific regional factors affecting international buyer interest.
For real estate investors, these trends suggest a need for careful consideration of regional dynamics and market conditions. While key regions like Greater Lisbon and the North continue to show robust activity and growth potential, other areas such as the Algarve may require a more cautious approach. Investors should remain informed about local economic factors, regulatory changes, and demographic shifts that could influence property values and demand.
