Portugal House Prices are rising much faster than the EU Average: In the third quarter of 2022, Portugal house prices rose 13.1% year-over-year, surpassing Eurozone and European Union average - 6.8% and 7.4% respectively.
Portugal is still considered a developing country and despite the strong growth it has experienced over the last few years, its price per sqm is still more affordable and therefore there still room for growth and potential for investment returns.
Demand for property in Portugal by foreigners grew by double digits in eight years, from 5% in 2012 to 12% in 2022. In major cities (Lisbon and Porto) that rate is double! Portugal's housing market fundamentals are robust: there is significant excess of demand vs. supply; Less than half of completed new houses per 1,000 inhabitants compared to the EU average.
that make Portugal an attractive destination for real estate investment include:
Portugal has so much to offer investors, from its stunning coastline and Mediterranean climate to its rich culture, history and quality of life. Portugal is also a very attractive place to live in with its excellent schools, education and healthcare systems.
Long term rental with stable income, reduced turnover, and a growing market, long-term rentals provide a solid foundation for investors seeking to maximize their returns and build a sustainable real estate portfolio.
Transactions of new dwellings increased strongly by 16% y-o-y to 23,064 units while transactions value rose by 28.7% y-o-y to €5.91 billion (first 3 Qtrs. of 2022- see in red bellow).
2. AFFORDABILITY & QUALITY OF LIFE
Driven by its culture, Portugal has the highest rate of home ownership in EU (78% are homeowners) and has one of the lowest rates of house price/GDP per capita ratio in EU.
Portugal is propelled by foreign investments as it's considered a safe place (Top 3-World Safety Index), has affordable health system, politically stable, and possesses a modern infrastructure and high quality of life. In addition, according to a recent study from 2023, Portugal is considered best place to retire in Europe based on numerous factors such as cost of living, house prices and life expectancy.