Portugal Property Market: A 2024 Outlook
Villa in Gale, Algarve | By Abloom Boutique Real Estate

As 2024 unfolds, Portugal’s real estate market continues to captivate the attention of global investors and home buyers.

Being a global marketplace for international real estate listings, JamesEdition explore the current state of the Portuguese property landscape, and the considerations that should be made before buying real estate in the country.

In this article, we’ve teamed up with Your Property Advisor, the experts in the Portuguese property market, to delve into the nuances of the market and unveil the complexities of investing in Portugal’s real estate.

Your Property Advisor’s analysis of current trends and future prospects is backed by their experience in representing buyers’ interests wether it’s a first property or an investment towards a property portfolioto.

Gonçalo Roxo
Gonçalo Roxo
Co-founder of Your Property Advisor (Portugal)
Your Property Advisor is a real estate consultancy that sells properties without maintaining a portfolio. This approach gives us the freedom to search for all available properties across Portuguese territory, providing a significant advantage for buyers. In a continuously expanding ‘seller’s’ market, a real estate consultancy that seeks to protect buyers' interests serves as a valuable solution to meet market needs.

Market Outlook and Legislative Changes

Is 2024 a good time to buy a property in Portugal?

Navigating the complexities of Portugal’s real estate market in 2024 presents both unique challenges and opportunities for potential buyers.

According to the Statista outlook, the market value will reach US$1.64 trillion in 2024.

Among the various segments, residential real estate dominates, expected to account for US$1.33 trillion of the market volume in 2024.

The market is anticipated to sustain a steady growth rate, with an annual growth rate of around 5% projected from 2024 to 2029.

Gonçalo Roxo: “Portugal undergoes significant policy transitions aimed at balancing local housing needs with foreign investment”.

Portuguese Legislative and Market Changes

In response to rising housing prices and local accessibility concerns, the Portuguese government has implemented measures such as phasing out the Golden Visa program and modifying the Non-Habitual Resident (NHR) regime.

These changes reflect a broader strategy to temper the market, as foreign investments have previously fueled a property boom across major regions.

Following the legislative elections on March 10, 2024, the Democratic Alliance coalition (AD) won with 29.5% of the vote and 79 seats, and has introduced proposal to address the housing crisis in Portugal.

The winning party prioritizes increased supply, reduced taxes and bureaucracy, and promoting partnerships for construction and rehabilitation.

Gonçalo Roxo: “The changes in investment policies require a more strategic approach from investors, highlighting the importance of comprehensive market knowledge and expert guidance”.

Economic Outlook and Investment Potential

The economic forecast for Portugal suggests cautious optimism among investors and stakeholders.

With the country’s GDP steadily recovering and a strong focus on boosting local employment and sustainable development, property investment in the real estate market is expected to regain its momentum.

The upcoming approval of the State Budget and potential government reshuffles post-2024 legislative elections might introduce new incentives or adjustments to benefit both local and international investors.

Real estate experts believe that while the market is currently in a state of adjustment, the long-term prospects remain favorable.

Property Types and Investment Opportunities

Currently, JamesEdition features more than 65,000 homes for sale in Portugal

The country offers a wide range of real estate, from cutting-edge modern villas in the Algarve to historic apartments in Lisbon or traditional “quintas” in rural areas, from Porto to Evora.

There are also investment opportunities, such as properties in trending eco resorts or high-end residential hubs for “progressive nomads”.

For investors seeking opportunities in Portugal, identifying areas with growth potential that still aligns with the new market dynamics is key.

Regions that offer a blend of lifestyle and investment value, such as the Algarve, Lisbon, and Porto, continue to be attractive due to their continued demand and developmental initiatives.

Emerging locales like the Silver Coast and the interior parts of the Alentejo are also gaining attention for their untapped potential and competitive pricing.

Gonçalo Roxo: “’While legislative changes mean that 2024 presents certain uncertainties in the Portuguese real estate market, the overall outlook remains positive. The country’s ‘classic’ locations promise stable demand among foreign buyers”.

Locations and Lifestyles: 5 Property Destinations to Look Out for in 2024

The allure of Portugal’s diverse regions, combined with its rich cultural heritage and favorable climate, makes it an attractive option for those seeking investment opportunities or a second home.

Lisbon

Average Price on JamesEdition: €973,000 per listing / €5,120 per sqm

Portugal Price Report (1)

The capital city remains a popular destination for investors due to its vibrant lifestyle, historical significance, and impressive infrastructure.

Lisbon’s property market has shown resilience, with demand spanning from luxury apartments in historic districts like Chiado and Baixa to more modern developments in areas such as Parque das Nações.

The city’s ongoing urban renewal projects continue to enhance its appeal, making it a promising area for both residential and commercial investments.

Porto

Average Price on JamesEdition: €723,000  per listing / €3,600 per sqm

Portugal Price Report (4)

Porto, Portugal’s second city, is renowned for its architectural charm, burgeoning arts scene, and robust tech industry.

The city has become a hub for innovation and entrepreneurship, which has, in turn, boosted its residential market. Investments in Porto often yield high returns due to the city’s growing popularity among both expats and tourists.

The areas around the Ribeira District and Foz do Douro are particularly popular for their scenic views and proximity to the city center.

The Algarve

Average Price on JamesEdition: €898,000 per listing / €4,100 per sqm

Portugal Price Report (2)

Known for its stunning coastlines and golf resorts, the Algarve remains one of Portugal’s most sought-after regions for real estate investment. The region offers a high quality of life and has a well-established expatriate community. Towns like Vilamoura, Lagos, and Albufeira offer both beautiful beaches and leisure facilities as well as a solid rental market, presenting investors with the potential for steady rental opportunities and appreciating capital.

Madeira

Average Price on JamesEdition: €802,200 per listing / € 3,800 per square meter

Portugal Price Report (11)

This Portuguese island offers unique investment opportunities, particularly for those looking to invest in tourism-related properties. Madeira is popular for its natural beauty, mild climate, and plentiful outdoor activities. Properties here can be ideal for holiday rentals or as retreats offering wellness and eco-tourism experiences.

Tróia

Average Price on JamesEdition: €1,493,000 per listing

Portugal Price Report (9)

Tróia is an exceptional investment destination for those seeking a blend of leisure, nature, and exclusivity. The peninsula, situated just south of Lisbon, offers a unique combination of crystal-clear waters, unspoiled beaches, and lush greenery, making it an idyllic retreat away from the urban hustle.

Housing Price Report 2024

Portugal’s housing market remains dynamic, with various regions experiencing different shifts in property prices and pricing trends. Experts have noted a steady appreciation in established markets and promising growth in emerging regions.

Whether you’re considering a new home purchase or seeking investment opportunities, check out our latest country’s price report: How Much Is a House in Portugal: Best Places to Buy in 2024.

Forecast: A Shift in Foreign Buyers

The country’s strategic location and quality of life continue to attract a sophisticated demographic of investors and residents, challenging other European destinations like Spain.

According to experts, Portugal can leapfrog Spain as the leading European destination for affluent investors in the next few years.

The changing preferences of these buyers are shaping the market, with an increasing trend towards properties that offer both luxury and sustainability.

Conclusion

  • The Portuguese real estate market offers a range of opportunities for investors, from residential real estate to investment properties, with a projected market volume of US$1.64 trillion in 2024.
  • Since 2024, legislative changes have required a more strategic approach from investors. New policies prioritize increasing supply, reducing taxes and bureaucracy, and promoting partnerships for construction and rehabilitation.
  • Portugal successfully competes with other Mediterranean countries in the luxury and investment real estate segment, offering potential for long-term value appreciation and making its real estate market a compelling option for investors.

Explore the buying process with our comprehensive 360-degree guide to Portugal:

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