Portugal has the highest rate of home ownership in EU (78% are home owners) and, driven by its culture, one of the lowest rate of house price/GDP per capita ratio in EU.
Portugal’s construction industry is well respected across the EU; Portuguese companies often contracted for projects all over the continent.
Home loans accelerated in 2020, despite decreased growth in household disposable income and macroeconomic uncertainty.
Portugal is propelled by foreign investments as it's considered a safe place (Top 3-World Safety Index), politically stable, and possesses a modern infrastructure and high quality of life. Demand for property in Portugal by foreigners grew by double digits in eight years, from 5% in 2012 to 11% in 2020.
Seven consecutive years of economic growth (excluding 2020; Covid), along with continued expansion of housing prices.
Portugal's housing market fundamentals are robust: An excess of demand vs. supply; Less than half of completed new houses per 1,000 inhabitants compared to the EU average.
This translated to a 25% increase in transactions and a 33% increase in value in the first 3 quarters of 2021, year-on-year (see graph).