40% PRICE INCREASE IN PROPERTY - PORTUGAL 2024

Property Market Update: Lisbon and Portugal (2024)

Overview of Price Growth in Lisbon Region (NUTS)

• Lisbon region property prices have seen a substantial rise since 2015, particularly after the COVID-19 pandemic, driven by high demand and limited supply. Average prices in Lisbon city increased by approximately 40% since 2015, reaching €5,642/m² in mid-2024.
• Outer areas like Cascais (€5,164/m²) and Oeiras (€4,110/m²) also performed well, while more affordable areas like Mafra (€2,560/m²) and Sintra (€2,552/m²) experienced moderate growth.

Price Overview by Region in Portugal (2024)

Here is a breakdown of average prices across nine NUTS regions:

- Lisbon Metropolitan Area: €5,634/m² (urban Lisbon), with nearby cities like Cascais and Oeiras showing strong performance.
- Algarve: The southern region is one of the most expensive in Portugal, averaging around €3,000/m², driven by international demand.
- Madeira: Housing prices are growing, currently around €2,500/m².
- Setúbal: A growing region south of Lisbon, averaging €2,500/m².
- North Region (Porto): Porto is leading the region with prices at €2,500-€3,000/m², while surrounding areas are more affordable at €1,500-€2,000/m².
- Centre Region: More affordable, with prices around €1,200-€1,500/m².
- Azores: Stable with prices ranging from €1,000-€1,500/m².
  
Top Performing Areas in Lisbon:  

- Marvila stands out as one of the fastest-growing neighborhoods in Lisbon, now the second most expensive parish with prices at €5,000/m², surpassing many traditionally popular areas.

- Cascais and Oeiras continue to be attractive for high-income buyers due to their seaside locations and proximity to Lisbon, maintaining robust price growth.

Price Growth Expectations for 2024

- Despite a 20% drop in transaction volumes, Portugal's real estate market remains resilient due to strong demand and low supply. Prices are expected to continue rising moderately in 2024, particularly in high-demand areas like Lisbon and Porto. However, a shortage of new housing stock and increased interest rates may slow the pace.
- In Lisbon, new large-scale rental projects are anticipated, which could influence the market. Investors remain confident, with international interest still significant, despite higher costs.

This overview highlights Portugal's sustained property growth, especially in major cities and sought-after regions like the Algarve and Lisbon. The focus remains on addressing supply shortages to stabilize prices in the long term.