The real estate market in Portugal has been on a wild ride in 2023. People thought there might be a bubble burst, but surprisingly, demand has been going strong, and prices have mostly stayed stable or even gone up.
Updates of the Real Estate Market – August 2023
House prices have been climbing around 9.7% annually since 2017, and the residential price index shows a 19.4% increase in the past year alone until September 2022. But, the thing is, there haven’t been enough new houses popping up to keep up with all the demand.
The government’s decision to end the golden visa program created a lot of uncertainty and shook up the market. It affected the investor market the most, with some people backing out due to the changes. A bunch of folks tried to take advantage of the program before it ended, but larger investors held off, hoping for a better market later on around mid-2024.
Getting loans and credit has become tougher with stricter criteria and higher interest rates because of the Euribor rate. This has made the housing crisis worse for many people.
Rental prices have been going up too, making it harder for renters. The new housing measures also made things tricky for landlords, who can’t increase rent or terminate contracts easily.
Overall, demand is still high, and prices are steady in most places. But those policy changes have caused uncertainties, especially for investors. And in the rental market, things might get tough for tenants since the supply won’t likely increase. We’ll have to wait and see how the market adjusts over the next year and if those opportunities for investors will come true.
Anyway… there is never a 100% perfect moment to sell or buy a property. Let’s start chatting right now!
Isabel Romano | + 351 933263788 | hello@lemontreehomes.pt
