The first quarter of 2024 in the Portuguese property market reveals several key trends that are essential for potential real estate investors to consider. Median house prices in Portugal have seen an overall increase, with notable growth in several populous municipalities and regions. Despite a year-on-year growth rate of 5.0%, there has been a slowdown compared to the previous quarter’s 7.9%. Specific areas such as Baixo Alentejo experienced significant growth, while others like Beiras e Serra da Estrela saw a decrease in prices.
Foreign buyers continue to have a strong presence in the market, with higher median prices for transactions involving purchasers with foreign tax residence, especially in Greater Lisbon and Porto Metropolitan Area. This trend indicates a sustained demand from international investors, making these areas particularly attractive for investment.
Investors should note the variations in price growth across different regions and municipalities. The highest median house prices were recorded in Lisbon, Cascais, and Oeiras, highlighting the premium value associated with these locations. However, it’s crucial to consider the growth rates, as some areas like Loures experienced a decline in prices.
On the other hand, potential investors should be cautious of the slowing growth rates in certain regions and the overall market volatility. While areas like Baixo Alentejo show impressive growth, other regions such as Beiras e Serra da Estrela have witnessed price decreases. Additionally, the slowdown in median house price growth from 7.9% in the previous quarter to 5.0% may indicate an approaching plateau in the market, suggesting that the rapid price increases seen in recent quarters may not be sustainable in the long term.
Investors should also be aware of the disparities between the prices paid by foreign and domestic buyers, which could lead to potential market adjustments or increased regulation. Careful consideration of local market dynamics, potential policy changes, and economic factors will be crucial in making informed investment decisions in the Portuguese property market.
