The real estate market in Portugal has faced significant challenges in recent years, and the year 2023 brought changes - albeit expected ones - to the trend seen since the post-pandemic period. The unfavourable international situation for increasing levels of confidence and purchasing power, the increase in interest rates and the greater difficulties in accessing housing credit, conditioned transactions across the whole of Portugal. All of this, together, translated into a 17% drop in sales in Portugal - more than 130 thousand transactions were carried out in the previous year. This decrease in the number of sales did not, however, have an impact on prices. In fact, in 2023, the average sale price nationwide increased for new properties by 8%€4,045/m2, and 9% - €2,116/m2 - for used properties.
Despite these obstacles and challenges, Engel & Völkers demonstrated, in 2023, the preparation, ability to adapt to market changes, resilience and innovation that has always characterised us, allowing us to reach a turnover of over one billion euros at the end of 2023.
In 2024, the real estate market will continue with the trend of high demand, well above supply, with a relative lack of definition regarding what recent political changeshousing incentives for younger people, on the one hand, and the end of certain tax benefits, particularly for non-habitual residents - may bring. Portugal continues to be an attractive market for real estate investment and for international investors, and the choice of certain cities - Lisbon, Porto, Cascais, Braga - by digital nomads for buying and renting will continue.
In closing, 2024 promises to be a year of great challenges and possibilities in the real estate market. Engel & Völkers is prepared to face uncertainties with the same resilience and innovation that characterises us. We will continue to provide personalised service and exclusive solutions to our clients, helping them navigate the market and making safe and profitable investments. Our dedication to understanding and meeting each client's specific needs will ensure that, even in times of change, investing in quality properties in Portugal will continue to be a smart and valuable choice.
Juan-Galo Macià - CEO of Engel & Völkers for Spain, Portugal and Andorra.
Index
Main highlights of the Portugal market report 2023-2024
01 ABOUT US
02 E&V NUMBERS
03
PORTUGAL'S ECONOMIC SITUATION
04
PORTUGUESE RESIDENTIAL MARKET TRENDS
About us | 01
Christian Völkers is the founder of the Engel & Völkers Group. In 1977, he founded the company with his friend and business partner, Dirk Engel, and transformed Engel & Völkers into a global brand in the premium sector.
Christian Völkers created the Engel & Völkers Bible, which became the basis of the globally successful franchise system and the in-house real estate academy. In 1988, he founded the in-house publishing house, Grund Genug, and the architecture and lifestyle magazine of the same name.
Christian Völkers, visionary and strategic thinker, continued to develop an innovative range of real estate business concepts.
Engel & Völkers' success is based on a strong local presence and the special qualifications of its real estate consultants. These play a decisive role in the transparent management of all sales processes. Digitally connected to each other and with the help of innovative tools, they follow market trends. Thanks to their individual training at the in-house academy, they have a trained eye for viewing properties and determining values. In this way, they monitor the delicate process of assessing market value at the highest level.
For over 45 years, Engel & Völkers has focused on highquality residential and commercial properties, positioning itself in the premium sector. It is mainly real estate consultants who represent Engel & Völkers. More than 16,600 people work under the Engel & Völkers brand in more than 35 countries, on 5 continents and in more than 1,000 locations. Together, they reflect the company's values: competence, exclusivity and passion.
Engel & Völkers has had a presence in Portugal since 2006, having a vast network of real estate agencies aimed at the luxury market, operating in Braga and Guimarães, Porto, Gaia and Gondomar, Leiria, Lisbon, Cascais and Estoril, Sintra, Comporta and the Alentejo coast, and the Algarve - Lagos, Portimão, Albufeira, Vilamoura, Quinta do Lago, Faro and Tavira.
Engel & Völkers writes its story
1977
Foundation of the company Engel & Cie. The headquarters open in a privileged location along the Elbchaussee boulevard in Hamburg.
Engel & Völkers introduces the Shop system.
Academy Foundation Engel & Völkers.
1998 1988 1990 1995
The franchise system is established at Engel & Völkers.
2007 2006 2001 1988 1996
Engel & Völkers targets international markets with the opening of the first store outside Europe.
Engel & Völkers opens its first office outside Germany, example of global expansion.
Opening of the first licence in Portugal, located in Albufeira.
As part of its global expansion, Engel & Völkers enters the American market.
Engel & Völkers creates the Grund Genug publishing house for the publication of the international magazine ‘GG magazine’.
Engel & Völkers Commercial is established.
Foundation of the Engel & Völkers Yachting and Engel & Völkers Private Office business units.
2023 2021
Jawed Barna becomes Group CEO and begins the next period of growth for Engel & Völkers.
2023
We join Magnum & Partners, specialists in development and investment consultancy, to continue to grow in the new development area.
2017 2015
Foundation of the Aviation business unit.
Juan-Galo Maciá becomes CEO of Spain, Portugal and Andorra.
2013
Introduction of the concept of Market Centre (MC).
Engel & Völkers reaches one billion euros in commission income. +
British private equity firm Permira becomes majority shareholder of Engel & Völkers.
2020
After many years of involvement with the company, Sven Odia becomes the sole CEO of Engel & Völkers. Founder Christian Völkers remains with the company and becomes chairman of the Board of Directors.
2018 2019
Moving of Engel & Völkers headquarters to Hamburg HafenCity.
Opening of the Market Centre (MC) in Lisbon (Portugal).
Portugal's economic situation | 02
Introduction
The Marketing Research Institute (IMR) and Engel & Völkers (E&V) Iberia worked in partnership with the aim of publishing a set of research reports on the main housing markets in Mainland Portugal. Each report analyses current conditions in each housing market, examining the evolution of demand, supply and prices, seeking to identify the main trends in each market. The reports thus aim to support and inform the decision-making process of buyers and sellers of residential products in each market.
Methodological Summary
The geographical areas under study for each of the markets were determined by Engel & Völkers, and there is not always a territorial correspondence with the respective administrative areas (NUTS, municipality or parish). Various sources of information were used, namely data from lists of the main developers and mediators operating within the geographic areas under analysis, internal information provided by Engel & Völkers regarding transactions carried out in 2022 and 2023, and statistical data from the National Institute of Statistics (INE), Pordata and the Bank of Portugal (BdP).
“We are seeing longer decisions and more aggressive bidding due to the current economic situation”
Constanza m aya Head of operations & expansion at Engel & Völkers Iberia
Framework of the National Economy
According to data from the Bank of Portugal, the Portuguese economy grew 2.3% in 2023, slowing down compared to the year-on-year growth of 6.8% recorded in 2022. It should be remembered that the growth recorded in 2022 was the highest since 1987 and occurred during the post-pandemic period. Still, this slowdown is, in part, explained by the downturn in international trade and domestic demand. If there was a slowdown for the year as a whole, the same did not happen in the last quarter of 2023, where the first estimate points to year-on-year GDP growth of 2.2%, an upturn compared to the 1.9% in the third quarter, reflecting a more favourable evolution of tourism exports and, to a lesser extent, private consumption.
With regard to inflation, it stood at 5.5% in 2023, decreasing to 3.2% in the first quarter of 2024 and with an estimate of 2.1% for 2025. In the coming quarters, this downward trajectory will be based on the evolution of energy and food prices, but should subsequently become more generalised, within a context of normalisation of monetary policy. In the labour market, employment is expected to remain high and gains in real average wages are projected. However, the unemployment rate increased to 7% in 2023, and a reduction is expected in the coming years, falling to 6.7% in 2025.
Private consumption increased by 0.3% in 2023, driven by the contained growth in families' real disposable income and the recovery in the savings rate. The slowdown in prices and the evolution of wages contribute to greater growth in disposable income in 2024, allowing an expected increase in private consumption of 1.2%, on average, alongside a recovery in the savings rate to a value close to that observed before the pandemic.
Investment grew 2.3% in 2023, driven by rising financing costs. In 2024-25, an upturn to 4.7%, on average, is expected, continuing to benefit from European Union funds, in particular those associated with the Recovery and Resilience Plan (PRR).
After growth, in 2022, in the demand for housing in Portugal, the economic context marked by the loss of purchasing power due to inflation and high interest rates on housing credit impacted the purchase and sale of homes throughout 2023. The average interest rate on new housing credit transactions rose from 3.2% in December 2022 to a maximum of 4.3% in September 2023, ending the year at 4.1%.
In Portugal, 136,499 homes were sold in 2023, 18.7% less than the previous year, which is the lowest record since 2017. Even with the decline in business, house prices rose 8.2% in 2023, having only slowed growth compared to the previous year. Of note is the particularly intense reduction in the sale of used homes, with 108,380 used homes being sold, 21.4% less than the previous year. As for new homes, this decrease was less pronounced, with 28,119 new homes being bought and sold, 6.1% less compared to 2022. House sales last year generated a total of 28 billion euros, 11.9% less than in 2022.
The majority of homes sold in 2023 were purchased by families, representing 85.5% of the total. However, they bought fewer houses compared to the previous year. In fact, 116,752 homes were bought and sold by families in 2023, for a total of €23.5 billion, which represents a reduction, compared to 2022, of 19.8% in number and 13.8% in value. Buyers who live outside the borders of Europe are going against the grain, moving forward with more acquisitions. There was a 9.3% increase in transactions by these foreign buyers, for a total of 5,366 properties, reinforcing the investment trend seen in recent years by the phenomenon of digital nomads in certain areas of Portugal, namely in the metropolitan areas of Lisbon, Porto and Braga.
Porto Gaia · Gondomar
Lisbon
Comporta Melides
Lagos Albufeira
Vilamoura
Carvoeiro
Quinta do Lago
Faro Tavira Portimão
Cascais Restelo
Sintra Oeste
Braga · Guimarães Estoril Oeiras
NORTH REGION
Braga · Guimarães
Porto
CENTRAL REGION AND LISBON
Lisbon · Oeiras
Cascais · Estoril
ALENTEJO REGION
Comporta · Melides
ALGARVE REGION
Lagos
Portimão
Albufeira · Carvoeiro
Vilamoura
Faro · Tavira
PORTUGUESE RESIDENTIAL MARKET TRENDS
North Region
Braga · Guimarães
Porto
North Region | Braga · Guimarães
Population or number of inhabitants in Braga
Source: INE, data analysis Marketing Research Institute 194.588
Annual population variation in Braga
€
Average E&V price for 2023 in Braga
Annual variation in the average E&V price for 20222023 in Braga
156.907
Population or number of inhabitants in Guimarães -0,33%
Annual population variation in Guimarães
With a rich history dating back to Roman times, Braga, or Bracara Augusta as it was known at the time of its foundation (15-13 BC), has a long tradition as a centre of power, culture and religion, being known for its architectural and cultural heritage. Among its many monuments, the Braga Cathedral, one of the oldest cathedrals in Portugal, and the Sanctuary of Bom Jesus do Monte, classified as a UNESCO World Heritage Site, stand out. Furthermore, Braga is famous for its festivals and traditions, such as Holy Week, which attracts thousands of visitors and tourists every year, or for its local cuisine.
According to 2022 estimates, the municipality of Braga has a population of approximately 195,000 inhabitants, being one of the most populous municipalities in the country, with an annual population variation of around 1% compared to 2021.
The age structure of Braga's population reveals a balance between the various age groups, although, like other regions of the country, it also faces challenges related to population ageing. However, Braga stands out for having a relatively young population, driven by the presence of several higher education institutions, including the University of Minho, which attracts students from all over the country and abroad.
1.500 €
Average E&V price for 2023 in Guimarães
18,30%
Annual variation in the average E&V price for 20222023 in Guimarães
In terms of economic development, Braga is one of the main centres of innovation and technology in Portugal. The municipality is a hub for business development, home to several technology companies, startups and research institutions. The services sector, particularly commerce and education, also plays a significant role in the local economy.
Guimarães, a municipality located in the north of Portugal and a city known as the “cradle of the nation” due to its historical importance in the founding of Portugal, is a city full of heritage and culture. With a population of approximately 157,000 inhabitants, Guimarães is a municipality characterised by a diverse population and a rich cultural heritage. The city of Guimarães, which is the municipal seat, maintains a balance between urban and rural areas, offering a high quality of life to its residents.
Economically, Guimarães stands out for its textile industry, one of the most important in Portugal, and for a growing technology and innovation sector. Furthermore, tourism plays a vital role in the local economy, driven by the city's rich historical and cultural heritage.
Guimarães is known for its well-preserved historic centre, which was classified as a World Heritage Site by UNESCO in 2001. Among its many monuments, Guimarães Castle, the Palace of the Dukes of Bragança and the iconic Praça de Santiago stand out. The city is also famous for its cultural events, such as Festas Gualterianas and Feira Afonsina, which celebrate local history and traditions.
After the recovery seen in the post-pandemic period, both municipalities appear to reflect the changes in the international situation over the last two years. In fact, in Braga, the sale of family homes (Figure 1) reflects a drop in sales from 2021 to 2022, with around 2,900 units sold that year, followed by an even more pronounced drop in 2023, with 2,400 units sold, representing a decrease of 15.6% compared to 2022. The municipality of Guimarães follows the same trend exhibited by Braga, observing a drop of 10.4% in 2023, reaching around 1,400 units sold that year.
Both cities have faced challenges in the family housing sales market in recent years, with periods of growth followed by significant declines, reflecting constant changes in economic conditions, interest rates, supply and demand in the property market, as well as external influences, which have a direct impact on quality of life, not only in these municipalities, but in the country in general.
Figure 1 | s ales of family homes (n)
Source: INE.
Braga Guimarães
Engel & Völkers' analysis of average selling prices for housing shows a significant increase in both municipalities. In Braga, the average price reached €1,664, with an annual variation of 17.8%, while in Guimarães it was €1,500, with an annual variation of 18.3%. These increases reflect a considerable appreciation of the real estate market, driven by the growing interest of foreign buyers, digital nomads who work remotely and find quality of life in these cities, while offering a rich and diverse culture.
On average, international buyers (non-residents in Portugal) represent all housing purchases, in 2023, within the municipality of Braga. Currently, foreigners represent around 85.7% of intermediation transactions carried out by the Engel & Völkers Braga and Guimarães agency. The most sought-after residential product in this area are houses with more than three bedrooms and areas exceeding 180 m 2 .
With regard to demand in the rental market (Figure 2), both municipalities have shown an increasing trend since 2019, with the municipality of Braga seeing a stabilisation in the number of rental contracts concluded (2,357). In Guimarães, demand increased, rising from 1,174 contracts entered into in 2022 to 1,259 in 2023, the highest figure in the last seven years. Both Braga and Guimarães have a dynamic rental market, driven by the university population in the area, as well as the growing demand, in recent years, for housing in the area by digital nomads.
2 | New rental contracts for family homes (n)
Construction and new construction licences for family housing in the municipalities of Braga and Guimarães point to growth in the coming years (Figure 3). In 2023 there will be growth of 29.3% compared to 2022 in terms of the number of homes completed. New construction licences saw significant growth of 71.9% in 2023, with 2,001 new construction licences issued. This significant increase, both in new homes completed and new construction licences, reflects robust dynamism in the construction sector and an active response to growing housing needs in the Braga and Guimarães areas.
3 | New construction and construction licences within the municipalities of b raga and g uimarães (n)
Source: INE and IMR calculations
Figure
Source: INE Braga Guimarães
Figure
Analysis of housing price growth (€/m 2 ) in Braga and Guimarães reveals a consistent upward trend since 2019 (Figure 4). In the fourth quarter of 2019, the average price per square metre was €949 in Braga and €857 in Guimarães, and these values gradually increased in the following quarters, reaching €1,524 and €1,219, respectively, in the fourth quarter of 2023. This represents steady growth over four years. In the last three years in particular, from 2021 to 2023, there has been an acceleration in the pace of growth, with significant quarterly increases. This appreciation can be attributed to a variety of factors, such as the growing demand for housing in the region, government policies favourable to the real estate market and the attractiveness of the cities of Braga and Guimarães as a place for residence and investment.
In relation to the rental market, in 2023, average prices per square metre continued the increasing trend (Figure 5), reaching €7/m² in Braga and €5/m² in Guimarães, representing increases of 15.9% and 11.5%, respectively, compared to 2022. This constant growth in recent years highlights a dynamic rental market, largely driven by the university environment in the region, which fuels significant demand, especially from young people looking for temporary housing.
Source: INE
Figure 5 | m edian value of rents per m 2 for new rental contracts (€)
Braga Guimarães
Source: INE
Figure 4 | m edian value of sales per m 2 of family homes (€)
Braga Guimarães
Região Norte | Porto
Source: INE, data analysis Marketing Research Institute 234.438
Population or number of inhabitants in Porto 1,65%
Annual population variation in Porto
Located on the banks of the Douro River, the city of Porto is a multifaceted treasure that combines history, culture, cuisine and world-renowned wines. With a population of more than 235,000 inhabitants in 2022, the city of Porto has a significant historical importance for the north of Portugal. Its unique and well-preserved architecture tells the city's history, having been recognised by UNESCO in 1996 as a World Heritage Site.
Culturally vibrant, Porto is home to a number of cultural institutions, including contemporary art museums, such as the Serralves Museum, art galleries, theatres and concert halls. It also stands out for its lively nightlife, with a multitude of bars, restaurants and fado houses, where visitors can enjoy authentic Portuguese music.
In addition to its cultural attractions, Porto is known worldwide for its Port wine, produced in the vineyards of the Douro Wine Region, a UNESCO World Heritage Site since 2001, and aged in the historic cellars of Gaia, on the other side of the river. Wine lovers can explore the region's wineries and participate in tastings, while food lovers can taste traditional dishes from Porto cuisine.
3.984 €
Average E&V price for 2023 in Porto
15,97%
Annual variation in the average E&V price for 20222023 in Porto
But Porto is not just a city of history and tradition; it is also an urban centre in constant evolution, with a dynamic and diverse community. From the trendy Boavista neighbourhood to the lively Ribeira, Porto offers a unique experience that combines the best of the past and present, making it an unmissable destination for travellers looking to discover the soul of Portugal.
The demand for housing, which had been growing steadily until 2022, experienced a predictable drop in 2023. At a national level - and according to data from the INE - there was a significant decrease of 18.7% in the number of real estate transactions in the last quarter of 2023. This decrease was also observed in the specific case of the city of Porto, however on a smaller scale, with an 11.4% decrease in the number of homes sold in 2023, compared to the previous year.
Evolução do número de transações no concelho de Porto (2019-2022, anualmente)
Figure 6 | s ales of family homes (n)
Source: INE
Fonte: INE, Ministério da Justiça, cálculo e análise de dados ImoEconometrics
The rental market in Porto has shown consistent growth over the last few years, reflecting the dynamics and attractiveness of this Portuguese city. Since 2019, there has been a progressive increase in the number of contracts concluded, with a total of 3,043 new contracts registered that year. This growth remained firm until 2022, when 4,575 new rental contracts were signed. However, in 2023, this number rose to 4,735, showing growth of 3.5% compared to the previous year. One of the reasons behind this continuous increase in demand is Porto's growing attraction for digital nomads, individuals who work remotely and look for places with a high quality of life and infrastructure suitable for their lifestyle. Furthermore, the city is characterised by a young population, with several student hubs spread throughout the metropolitan area, which also contributes to the growing demand for rental housing. This scenario suggests a robust and expanding rental market, with promising prospects for the future.
7 | New rental contracts for family homes (n)
Gráfico 2 | Número de novos contratos de arrendamento habitacional no concelho de Porto
The family housing construction sector in Porto has recorded a decreasing trend in recent years. Since 2021, the number of new construction licences and new homes completed has progressively decreased. In 2022, there was a 1.8% decrease in the number of new licences and a 3.8% reduction in the number of homes completed. In 2023, the downward trend continued, with 1,603 new licences issued and 908 new homes completed. This means a decrease of approximately 5.6% in construction licences and a reduction of approximately 4.3% in the number of homes compared to 2022.
8 | New constructions and construction licences within the municipality of Porto (n)
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Source: INE
INE, análise de dados ImoEconometrics
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Source: INE and IMR calculations
Figure
In 2023, sales made by E&V in Porto showed an increase in relation to the previous year of around 26.2% with a total of 44 homes sold corresponding to an average sale value in the order of €613,000, of which 45.7% were purchased by foreign buyers, particularly German, Brazilian and English citizens. Despite the decrease seen in the market in terms of the volume of transactions, the average sales price per square metre increased significantly, reaching €3,984, which represents a positive variation of 16% compared to 2022. This increase in the average price reflects the persistent attractiveness of Porto's real estate market, particularly for foreign investors looking for opportunities due to its quality of life and potential return on investment.
Over the last two years, the real estate market in Porto has shown significant growth in the average sale price of housing per square metre (Figure 9). In the fourth quarter of 2021, the average price per square metre was €2,278. This value continued to increase throughout 2022, reaching €2,332 in the first quarter, closing this year at €2,568 in the fourth quarter. The upward trend persisted in 2023. In the first quarter, the average price rose to €2,609, followed by an increase to €2,684 in the second quarter. In the third quarter, the value reached €2,798 and, in the fourth quarter, it reached €2,866. This consistent growth over the past two years represents a substantial increase of approximately 25.8% from Q4 2021 to Q4 2023.
With regard to the rental market (Figure 10), after a period of stabilisation between 2019 and 2021, an increasing trend was observed in the value traded in 2022 and 2023. In 2022, the average rental value was €9.9/m2 , while in 2023 this value increased to €11.7/m2 , reflecting a significant appreciation in the rental market.
Figure 9 | m edian value of sales per m 2 of family homes (€)
Gráfico 6 | Número de novos contratos de arrendamento habitacional no concelho de Porto
Source: INE
Fonte: INE, análise de dados ImoEconometrics
Gráfico 7 | Dinâmica das rendas de habitação no concelho de Braga e Guimarães (2017 a 2022; novos contratos, €/m2xmês)
Figure 10 | m edian value of rents per m 2 of new rental contracts (€)
Fonte: INE, análise de dados ImoEconometrics 6,77
Source: INE
PORTUGUESE RESIDENTIAL MARKET TRENDS
Central Region and Lisbon
Lisbon · Oeiras
Cascais · Estoril
Central Region and Lisbon | Lisbon
547.010
Population or number of inhabitants in Lisbon -0,02%
Annual population variation in Lisbon
171.798
Population or number of inhabitants in Oeiras
Annual population variation in Oeiras
Source: INE, data analysis Marketing Research Institute
Nowadays, Lisbon is a world-renowned tourist destination. With its unique combination of history, dynamic culture, lively nightlife and sunny climate, Lisbon offers a charming setting that attracts visitors from all over the world. In addition to being a tourist hot spot, Lisbon has quickly transformed into a centre of technological innovation, with an ecosystem of startups and technology companies. Modern infrastructure, accessibility of coworking spaces and a strong public transport network make Lisbon an ideal location for digital nomads looking for a balance between work and quality of life. With international technology events, such as the Web Summit, Lisbon solidifies its role as a hub for digital and technological development, attracting global talent and investors.
The municipality of Oeiras, located within the metropolitan area of Lisbon, is a residential and business area par excellence, recognised for its quality of life and economic dynamism. With a privileged location next to the coast, Oeiras combines peaceful residential environments with areas of strong business development. The municipality is home to important business and technology parks, which attract a variety of Portuguese and international companies, especially in the technology, biotechnology and services sectors. Modern infrastructure, renowned schools, wellkept green spaces and an efficient transport network make
4.629 €
Average E&V price for 2023 in Lisbon
Annual variation in the average E&V price for 20222023 in Lisbon
3.721 €
Average E&V price for 2023 in Oeiras
-10,06%
Annual variation in the average E&V price for 20222023 in Oeiras
Oeiras an attractive place to live and work. Furthermore, the proximity to Lisbon makes Oeiras a preferred option for families and professionals looking for an ideal balance between personal and professional life.
After sustained growth over recent years, there was a drop in transactions, both in Lisbon and Oeiras, following the national trend of 2023 (Figure 11). In Lisbon, 7,191 homes were bought and sold, a decrease of 13.3% compared to 2022, with Oeiras standing at 1,856 transactions, representing a decrease of 37.6%. The unfavourable international situation, rising interest rates and inflation, combined with greater difficulty in accessing housing credit, explain a significant part of the drop observed, although it is expected that these values will tend to stabilise in the coming years.
11 | s ales of family homes (n)
Source: INE.
Engel & Völkers' analysis of average property sales prices shows that the parishes of Belém and Avenidas Novas have the highest average housing prices in 2023 (Table 1), with values exceeding €7,000/m 2 . Next are the areas of Parque das Nações, Misericórdia, Santo António, Marvila, Estrela and Santa Maria Maior, with values exceeding €5,000/m 2 . Amadora, Carnide and the Lisbon Surroundings have the lowest values, being below €2,500/m 2 . The biggest increases are located in the areas of Avenidas Novas (+45.9%), Lumiar (+40.1%), Amadora (+30.4%), Benfica (27.9%) and Belém (+26.9%).
Table 1 - Average E&V price in 2022 and 2023 and average variation in Lisbon (€/m2 , %)
Source: Engel & Völkers
Lisbon Oeiras
Figure
With regard to demand in the rental market (Figure 12), both Lisbon and Oeiras recorded drops in 2023. Lisbon recorded a drop of 10%, due to the decrease in the supply of rental properties. In Oeiras, the drop was 5.8%, reflecting a stabilisation in the rental market within the municipality.
Over the last three years, Lisbon has built an average of 5,523 new homes, a significantly higher value when compared to the average of 2,620 new homes between 2018 and 2020 (Figure 1). With regard to new construction licences, this has been decreasing since 2019, with an average of 660 new licences annually. This means that the supply of new homes within the municipality of Lisbon should remain at the same values, with a tendency to stabilise. This significant increase in the number of new homes completed reflects robust dynamism in the construction sector and an active response to the growing housing needs within the municipality of Lisbon.
In the municipality of Oeiras, there was an 'explosion' of new construction licences in 2022, which reveals a dynamism in the construction sector within the municipality, with the number of new homes completed expected to increase significantly in the coming years, as, in reality, the values since 2020 have been demonstrating an increasing trend (Figure 14).
Source: INE
Figure
New Homes Built New Construction Licences
Analysis of housing price growth (€/m 2 ) in Lisbon and Oeiras has revealed a consistent upward trend since 2019 (Figure 15). In the fourth quarter of 2019, the average price per square metre was €3,286 in Lisbon and €2,256 in Oeiras, and these values gradually increased in the following quarters, reaching €4,167 and €3,158, respectively, in the fourth quarter of 2023. This represents steady growth over four years. However, it is in 2023 that a slowdown in prices is seen in both municipalities - with prices even falling in Oeiras in the last quarter of 2023. This slight slowdown reflects the current economic situation; however, it is expected that the appreciation of the heritage within these municipalities will continue, albeit at a slower pace than that seen in 2021 and 2022.
15 |
Source: INE
Regarding the rental market, in 2023, average prices Regarding the rental market, in 2023, average prices per square metre continued their upward trend (Figure 16), reaching €15.2/m² in Lisbon and €13/m² in Oeiras, representing increases of 9.2% and 7.7%, respectively, compared to 2022. This continuous growth in recent years highlights a dynamic rental market, largely driven by the growing demand for temporary and long-term rentals due to the phenomenon of digital nomads, as well as the student population, in Lisbon and Oeiras, looking for stable accommodation in order to pursue their academic and professional careers.
16 | m edian value of rents per m 2 for new rental contracts (€)
INE
Figure
Lisbon Oeiras
Source:
Figure
m edian value of sales per m2 of family homes (€)
Lisbon Oeiras
Central Region and Lisbon | Cascais · Estoril
variation in the average E&V price for 20222023 in Cascais
Source: INE, data analysis Marketing Research Institute
The municipality of Cascais, divided into four distinct parishes, offers a mosaic of housing options for different lifestyles and budgets, with easy access and means of transport available, providing quality of life. The parish of Cascais and Estoril is where the municipality’s premium residential supply can be found. The cosmopolitan environment that the Estoril coast offers makes this “Portuguese Riviera” a sophisticated space that offers culture, cuisine and quality of life for lovers of luxury and a modern and international lifestyle. The parish of Carcavelos and Parede affords a laid-back seaside lifestyle, offering detached houses just a few steps from the beach, ideal for enjoying the sun and the sea breeze. The more affordable prices - compared to the parishes of Cascais and Estorilmake Carcavelos and Parede an attractive destination for those seeking value for money. The university hub of the Nova School of Business and Economics brought a new dynamic to the town and to the region's real estate market, and the beginning of construction of the real estate project on the land of Quinta dos Ingleses, where a mega urban development of 906 homes, a hotel, commercial and service spaces, as well as an urban park, will make this area, located on the seafront, a dynamic and attractive place to live and enjoy the excellent quality of life that this parish provides. In the inland parishes, Alcabideche and São Domingos de Rana, the family profile is predominant. The housing supply is concentrated in areas with greater population density, with apartments and villas. The more affordable prices, compared to coastal areas, make these parishes an interesting option for middle and lower middleclass families.
The increasing difficulties in accessing credit, the rise in interest rates recorded in the last two years, as well as a general decrease in purchasing power and an increase in the cost of living have meant that in 2023, the number of transactions decreased significantly within the municipality of Cascais, falling to pre-pandemic values. In fact, there was a 24.4% drop in the number of transactions between 2022 and 2023 (Figure 17).
International buyers represent all of the E&V Cascais agency's sales, namely German, American and Italian citizens. The average sale price stood at €8,945 in 2023, an increase of 107% compared to the previous year, demonstrating the appreciation and increase in demand for premium residential housing in the area.
Source: INE
The rental market has now entered a stabilisation phase, after a growing trend in the post-pandemic period. In fact, the number of new rental contracts changed little from 2022 to 2023, standing at 2,368 new contracts (Figure 18).
18 | New rental contracts for family homes (n)
Source: INE
The family housing construction sector in Cascais has seen an ambivalent trend in recent years. On the one hand, there has been an increase in the number of homes completed since 2020, while licences for new construction began to decline from 2021 onwards, suggesting that there will probably be a decrease in new completed homes in the coming years (Figure 19).
It is from the 1st quarter of 2021 - already in the post-pandemic period - that the increase in prices becomes more pronounced within the municipality of Cascais (Figure 20). Starting at €2,776/m2 in the 1st quarter of 2021, prices reached €3,976/ m 2 in the 4th quarter of 2023, representing growth of approximately 43.2% in three years. This period highlights an acceleration in real estate appreciation, with the largest quarterly increases observed from the 3rd quarter of 2021. This growth can be attributed to factors such as the postpandemic economic recovery, the increase in the inflation rate and a constant demand for housing within the municipality, combined with a reduced supply, and the upward trend is expected to continue in 2024.
Figure 20 | m edian value of sales per m2 of family homes (€)
As far as the rental market is concerned (Figure 21), there has been a constant increase in rental prices since 2020. In 2020, the average rental price was €10.4/m2 , rising to €10.9/ m 2 in 2021. However, between 2022 and 2023, there was significant growth, with the price reaching €14.2/m2 in 2023. This 13% increase between 2022 and 2023 reflects the rise in the inflation rate and rent adjustment at national level, and the municipality of Cascais is no exception to the rule.
Figure 21 | m edian value of rents per m 2 of new rental contracts (€)
Source: INE 7 11 15
Source: INE
Fonte: INE
Figure
Gráfico
Figure 19 | New constructions and construction licences within the municipality of Cascais (n)
PORTUGUESE RESIDENTIAL MARKET TRENDS
Alentejo Region
Comporta · Melides
Alentejo Region | Comporta · Melides
Population or number of inhabitants in Alcácer do Sal -0,95%
Annual population variation in Alcácer do Sal
Population or number of inhabitants in Grândola 0,17%
9.000 €
Average E&V price for 20231 13.954
Annual population variation in Grândola 28,57%
Annual variation in the average E&V price for 2022-20231
Source: INE, data analysis Marketing Research Institute
“Goldensands,Crystalclearwaters.Alittlesliceofparadise between the sea and the rice fields.” Comporta, located on the Alentejo Coast and at the gates of Lisbon, stands out for its approximately 40km stretch of white sand beaches, surrounded by dunes and green spaces, known for being a highly sought after destination for its relaxing environment, uniting a set of leisure and cultural infrastructures and a broad culinary offer. In 2022, the resident population in the area that encompasses the municipalities of Alcácer do Sal and Grândola did not exceed 25,000 inhabitants.
Contrary to what happened in most of the country, the number of transactions rose more here during the pandemic than anywhere else in the country and Comporta boomed (Figure 22). In 2022 and 2023, the decreasing trend in acquisitions stands out, as a result of the international situation, the increase in the cost of living, the inflation rate and increasing difficulties in accessing housing credit.
At the Engel & Völkers Comporta agency, international buyers represented 40% of total sales in 2023, with German, English and American citizens standing out. Regarding price, there was a 28.6% increase in the average sales price, reaching the value of €9,000/m2 in 2023.
Figure 22 | s ales of family homes (n)
Alcácer do Sal Grândola
Source: INE, Ministry of Justice
& Völkers Comporta.
The rental market is not very significant in the Comporta area, with an average of 74 new rental contracts signed in 2023, within the municipalities of Alcácer do Sal and Grândola, not changing much compared to 2022.
Source: INE Figure 23 | New rental contracts for family homes (n)
The data regarding construction licences and new homes completed for the municipalities of Alcácer do Sal and Grândola (Figure 24) demonstrate some volatility, with rises and falls over the years. However, 2023 represents growth, both in new licences (30.8%) and in completed homes (26.4%), showcasing the existence of a need to expand the supply of new homes in the area.
Analysis of housing price growth (€/m 2 ) within the municipalities of Alcácer do Sal and Grândola reveals a consistent upward trend since 2022 (Figure 25). In 2023, the municipality of Alcácer do Sal has seen prices rise at an accelerated pace, reaching €2,067/m 2 in the last quarter of 2023, and in Grândola, despite registering an increase in the same period, this is less pronounced, registering a drop in the last quarter of 2023, standing at €1,273/m 2
25 | m edian value of sales per m2 of family homes (€)
Source: INE
With regard to the rental market (Figure 26), it is worth noting a significant growth in the values from the municipality of Grândola, which rose from €5.2/m 2 in 2022, to €7.4/m 2 in 2023. In Alcácer do Sal, the growth trend of previous years is confirmed.
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Figure 24 | New constructions and construction licences within the municipalities of Alcácer do s al and g rândola (n)
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Figure 26 | m edian value of rents per m 2 for new rental contracts (€) Alcácer do Sal Grândola
Source: INE
Figure
Alcácer do Sal Grândola
PORTUGUESE RESIDENTIAL MARKET TRENDS
Algarve Region
Lagos
Portimão
Albufeira · Carvoeiro
Vilamoura
Faro · Tavira
Algarve Region | Lagos
Source: INE, data analysis Marketing Research Institute
Lagos, located in the western part of the Algarve, is a city rich in history, culture and natural beauty with a population of around 34,000 inhabitants. Known for its magnificent beaches, crystal clear waters and its impressive rock formations and sea caves, Lagos has a charming historic centre, full of narrow streets and pavements, where you can find buildings with traditional Portuguese architecture, offering attractive nightlife. Lagos also has a deep connection with Portugal's Age of Discovery. The municipality of Lagos offers a variety of outdoor activities, including golf, hiking, cycling and horse riding, as well as being an excellent starting point for exploring other parts of the Algarve, being surrounded by good road connections and close to Faro Airport, facilitating access for international visitors and tourists.
After a slight slowdown in the number of transactions within the municipality of Lagos between 2021 and 2022, there was a decrease in sales in 2023, with a drop of 20.6%, justified by the constant rises in interest rates, inflation and the general increase in the cost of living (Figure 32).
Analysis of average property sales prices by Engel & Völkers shows an increase of 42% compared to 2022, with the average price reaching €4,738. The majority of buyers are international (82%), with German, English and Belgian nationalities standing out. These buyers are mainly looking for family homes measuring more than 200m 2 , with sea views, close to beaches and in areas with low population density.
32 | s ales of family homes (n)
Source: INE
The long-term rental market within the municipality of Lagos has been stabilising in recent years, after an increase seen between 2018 and 2021 (Figure 33). On average, since 2020, 321 new rental contracts have been signed annually (Figure 34).
Figure 33 | New
Figure
The family housing construction sector in Lagos has been variable in recent years (Figure 34). Over the last three years, 247 new licences were granted annually, with 115 homes being completed each year in the same period. With a discrepancy between these two values, it is expected that the coming years will see an increase in the supply of new homes within the municipality of Lagos.
Figure 35 | m edian value of sales per m2 of family homes (€)
Figure 34 | New constructions and construction licences within the municipality of l agos (n)
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Source: INE and IMR calculations
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Analysis of house price growth (€/m 2 ) in Lagos reveals a consistent upward trend since 2019 (Figure 35). In the fourth quarter of 2019, the average price per square metre was €2,009, and this value gradually increases in the following quarters, reaching €3,182 in the last quarter of 2023, recording an appreciation of 36.9% since 2019. In the last three years in particular, from 2021 to 2023, an acceleration in the pace of growth was observed, with significant quarterly increases.
Source: INE
Regarding the rental market, in 2023, average prices per square metre continued their upward trend (Figure 36), reaching €8.9/m2 in 2023, registering, since 2017, an annual growth rate of 9.3% .
Figure 36 | m edian value of rents per m
for new rental contracts (€)
Gráfico 7 | Dinâmica das rendas de habitação no concelho de Braga e Guimarães (2017 a 2022; novos contratos, €/m2xmês) Fonte:
Algarve Region | Portimão
Population or number of inhabitants in Portimão
Source: INE, data analysis Marketing Research Institute
With a population of 60,194 inhabitants, Portimão is an important tourist destination in the Algarve region, the centre of a variety of relevant activities that bring dynamism to the region. An area rich in tourist draws, from beaches and golf, to architectural and cultural heritage, Portimão makes your day-to-day life, at different levels, vibrant and characterised by a rhythm that remains throughout the year.
The increasing difficulties in accessing credit, the rise in interest rates recorded in the last two years, as well as a general decrease in purchasing power and an increase in quality of life meant that, in 2023, the number of transactions decreased significantly within the municipality of Portimão, falling to pre-pandemic values. In fact, there was a 36.3% drop in the number of transactions between 2022 and 2023 (Figure 37).
Average E&V price for 2023 in Portimão
Annual variation in the average E&V price for 20222023 in Portimão
37 | s ales of family homes (n)
INE
Source:
Figure
The rental market has now entered a stabilisation phase, after a growing trend between 2019 and 2021. In fact, the number of new rental contracts changed little from 2022 to 2023, standing at 854 new contracts (Figure 38).
Figure 38 | New rental contracts for family homes (n)
It is from the 3rd quarter of 2021 - already in the post-pandemic period - that the increase in prices becomes more pronounced within the municipality of Portimão (Figure 40). Starting at €1,770/m2 in the 3rd quarter of 2021, prices reached €2,541/ m 2 in the 4th quarter of 2023, representing growth of approximately 30.3% in three years. This period highlights an acceleration in real estate appreciation, with the largest quarterly increases observed from the 3rd quarter of 2022. This growth can be attributed to factors such as the postpandemic economic recovery, the increase in the inflation rate and a constant demand for housing within the municipality, combined with a reduced supply, with the growing trend expected to continue in 2024, that is, a stabilisation of prices.
Figure 40 | m edian value of sales per m 2 of family homes (€)
Source: INE
The growth in new construction licences in 2022 did not extend into 2023, during which a 26.9% decrease in the issuance of new licences was recorded (Figure 39). However, the number of completed homes is already beginning to reveal, in 2023, an increase in new products in the region, with a growth of 75.3% compared to 2022. However, there is still a small supply taking into account the constant demand for housing in Portimão.
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Source: INE
Fonte: INE
The rental market recorded two significant increases recently (Figure 41): in 2022, the price rose 10.1% compared to 2021, and in 2023 this growth was even more pronounced - 14.2% - reaching an average value of €9.25/m2
Figure 41 | m edian value of rents per m 2 for new rental contracts (€)
Gráfico 7 | Dinâmica das rendas de habitação no concelho de Braga e Guimarães (2017 a 2022; novos contratos, €/m2xmês)
Source: INE
Fonte: INE, análise de dados ImoEconometrics
Source(s):
Figure 39 | New constructions and construction licences within the municipality of Portimão (n)
Algarve Region | Albufeira · Carvoeiro
Population or number of inhabitants in Albufeira
Annual population variation in Albufeira 3.863 € Average E&V price for 20232 23.950
Population or number of inhabitants in Lagoa
Source: INE, data analysis Marketing Research Institute
Annual population variation in Lagoa 16,95%
Annual variation in the average E&V price for 2022-20232
Albufeira and Lagoa, both municipalities located at the centre of the Algarve region, in the south of Portugal, with a population of around 65,000 inhabitants, are characterised by being strong tourist hubs, with populations that triple in the summer months, as a result of having excellent beaches and unique nightlife. Both municipalities benefit from excellent road infrastructure, being just a short distance from Faro Airport, facilitating access for international visitors and making the region even more attractive as a holiday destination.
After a recovery during the post-pandemic period, the number of residential property transactions sees a slowdown from 2022 onwards (Figure 27). The increase in interest rates and inflation, the increase in the cost of living and an unfavourable international situation clearly explains the decrease in transactions, which in Albufeira registered a drop of 16.2% and 29.2% within the municipality of Lagoa.
Analysis of average property sales prices by Engel & Völkers shows a significant increase in both municipalities. In Albufeira, the average price reached €3,863, with an annual variation of 17%, while in Lagoa it was €3,714, with an annual variation of 7.1%. International buyers represent the majority (72.4%), with German, Belgian and English nationalities standing out. These buyers are mainly looking for singlefamily homes measuring more than 300m2 , with sea views, close to beaches and close to services.
Figure 27 | s ales of family homes (n)
Source: INE
The Agreed Rental Programme, initiated in 2021 within the municipality of Albufeira, translates into a regime applicable to housing, which the municipality owns, and which is intended to be rented at values lower than the average values practised in the private rental market, in order to help families most in need and to minimise the social impact of rising inflation rates and the cost of living. This programme could have an impact on new rental contracts in the area, and as such, there will continue to be an increase in the number of new contracts in 2023, reaching 580 in Albufeira. There is also growth in the municipality of Lagoa, reaching 254 new contracts (Figure 28).
Housing prices in the two Algarve municipalities have continued to increase, and since 2019 prices have risen by 29.5% in Albufeira and 34.2% within the municipality of Lagoa (Figure 30). Analysing the annual growth rate, it appears that, since 2019, it was 9% in Albufeira and 11% within the municipality of Lagoa. Looking at the growth rate for 2023 compared to the previous year, it was 9.6% and 10%, respectively, demonstrating that the growth in housing prices has been resilient, justified by the interest in purchasing housing in the area and the reduced supply of residential products.
Figure 30 | m edian value of sales per m 2 of family homes (€)
Source: INE
Since 2020, the number of new construction licences has been increasing in the municipalities of Albufeira and Lagoa (Figure 29), however, the number of new homes completed has not yet kept up with the growing pace of new licences. In 2023 there will be a 14.9% increase in the number of new homes completed, and it is expected that this indicator will continue on an upward trajectory.
Source: INE
The value of rental contracts has also followed an upward trend since 2017 (Figure 31), as has the price of housing, with growth of 9.3% seen, from 2022 to 2023, in Albufeira and 6.9% in the municipality of Lagoa. Looking at the growth rate for 2023 compared to the previous year, it was 9.6% and 10%, respectively.
Figure 31 | m edian value of rents per m 2 for new rental contracts (€)
Gráfico 7 | Dinâmica das rendas de habitação no concelho de Braga e Guimarães (2017 a 2022; novos contratos, €/m2xmês)
Albufeiral Lagoa
Fonte: INE, análise de dados ImoEconometrics
Source: INE
Albufeiral Lagoa
Figure 29 | New construction and construction licences within the municipalities of Albufeira and l agoa (n)
Algarve Region | Vilamoura
72.538
Population or number of inhabitants in Loulé -0,19%
Annual population variation in Loulé
Source: INE, data analysis Marketing Research Institute
Vilamoura, located in the heart of the Algarve, within the municipality of Loulé, is one of the most prestigious destinations in Europe and a tourist benchmark at national and international level. Known for its beaches and internationally renowned golf courses, it is a widely known area for practising Golf, Sailing, Tennis, Padel and Horse Riding, being the stage for numerous international tournaments in various sports. Vilamoura Marina is the ex-libris par excellence, internationally distinguished by several associations. It enables residents to live a cosmopolitan life, surrounded by the best restaurants, elegant bars and exclusive shops, making it one of the main tourist attractions. Vilamoura offers numerous cycle paths and pedestrian routes, surrounded by nature and excellent, careful landscaping, providing a unique, healthy and varied lifestyle, both for those looking for a tourist destination, and for those who choose Vilamoura as a place to live.
The demand for housing, which had been growing steadily until 2022 (Figure 42), experienced a drop in 2023. At national level - and according to data from the INE - there was a significant decrease of 18.7% in the number of real estate transactions in the last quarter of 2023. In the specific case of the municipality of Loulé, this reduction was also observed, but on a larger scale, with a 39.3% decrease in the number of homes sold in 2023, compared to the previous year.
Analysis of average property sales prices by Engel & Völkers in Vilamoura shows an increase of 11.8% compared to 2022, with the average price reaching €4,520.
4.520 €
Average E&V price for 2023 in Loulé
11,77%
Annual variation in the average E&V price for 20222023 in Loulé
Half of buyers are international citizens, especially Germans, French and Swiss. These buyers are mainly looking for singlefamily houses measuring more than 300m 2 , with four bedrooms, garden and swimming pool, as well as apartments between two and three bedrooms with large terraces, benefiting from the excellent urban infrastructure and service infrastructure that Vilamoura offers.
Figure 42 | s ales of family homes (n)
Source: INE
The rental market has now entered a stabilisation phase, after a growing trend between 2019 and 2021. In fact, the number of new rental contracts changed little from 2022 to 2023, standing at 1,002 new contracts, equivalent to an increase of 2.6% (Figure 43).
INE, análise de dados ImoEconometrics
The family housing construction sector within the municipality of Loulé has seen a growing trend in recent years. Since 2020, the number of new homes completed has progressively increased (Figure 44). However, the number of licences decreased by 26.9% in 2023. It is expected that the number of homes completed will continue the upward trend in the coming years.
Figure 44 | New constructions and construction licences within the municipality of l oulé (n)
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Analysis of housing price growth (€/m 2 ) in Loulé reveals a relatively consistent upward trend since 2019 (Figure 45). In the fourth quarter of 2019, the average price per square metre was €2,170, and these values gradually increased in the following quarters, reaching €3,269 in the fourth quarter of 2023. In 2023, there was an acceleration in the pace of growth with significant quarterly increases, ending the year with an appreciation of 8.2%.
GFigure 45 | m edian value of sales per m 2 of family homes (€)
Fonte: INE
Source: INE
As for the rental market, in 2023, average prices per square metre continued the upward trend (Figure 46), reaching €9.4/ m², representing an increase of 11.7% compared to 2022.
Figure 46 | m edian value of rents per m 2 for new rental contracts (€)
Gráfico 7 | Dinâmica das rendas de habitação no concelho de Braga e Guimarães (2017 a 2022; novos contratos, €/m2xmês)
Source: INE
INE, análise de dados ImoEconometrics
Source: INE
Figure
Fonte:
Fonte:
Algarve Region | Faro and Tavira
67.924
Population or number of inhabitants in Faro 0,15%
Annual population variation in Faro 2.822 €
Average E&V price for 2023 in Faro
27.609
Population or number of inhabitants in Tavira -0,34%
Annual population variation in Tavira
Source: INE, data analysis Marketing Research Institute
Faro, the capital of the Algarve, had approximately 68,000 inhabitants in 2022, and is home to most of the region's administrative services, being a favourable area for the implementation of tertiary and commercial activities, subsidised by the housing. Less geared towards tourism than other regions of the Algarve, the city of Faro has a city life filled with cultural events throughout the year, and a rich historical heritage.
The municipality of Tavira, with nearly 28,000 inhabitants, is located at the eastern tip of the Eastern Algarve, and is an area rich in history and heritage, integrating part of the Ria Formosa Natural Park, with a very diverse appearance due to the channels formed under the influence of tidal currents, thus forming a dense hydrographic network, serving as a natural habitat for a variety of waterfowl.
Following a slowdown during the pandemic, Faro and Tavira municipalities saw a flourish of housing transactions, with growth of 25% and 21.7%, respectively, between 2020 and 2022. However, in 2023 there was a break (Figure 47) in this growth, as a result of scarcity of supply and increases in interest rates. Stabilisation of these values is expected in 2024.
3.003 €
Average E&V price for 2023 in Tavira
19,93%
Annual variation in the average E&V price for 20222023 in Faro
25,33%
Annual variation in the average E&V price for 20222023 in Tavira
The average value of housing purchase transactions at E&V Faro and Tavira is around €3,202/m 2 - an increase of 8.3% compared to 2022 - with demand, in Faro, for apartments measuring more than 200m 2 , with three bedrooms, swimming pool and terrace, and in Tavira, the villa is the most sought after property, with privileged sea views and proximity to the beaches. International buyers represent half of purchases in Faro and 91.7% of purchases in Tavira.
Figure 47 | s ales of family homes (n)
Source: INE
Faro Tavira
The rental market is stable in both municipalities, with a growth of 20.8% in new rental contracts within the municipality of Tavira in 2023 (Figure 48).
Analysis of housing price growth (€/m 2 ) in Faro and Tavira reveals a consistent upward trend since 2019 (Figure 50). In the fourth quarter of 2019, the average price per square metre was €1,622 in Faro and €1,827 in Tavira, and these values gradually increased in the following quarters, reaching €2,315 and €2,826, respectively, in the fourth quarter of 2023. This represents steady growth over four years. Over the last three years in particular, from 2021 to 2023, there has been an acceleration in the pace of growth in Tavira, with significant quarterly increases, explained not only by macroeconomic factors that affect practically all areas of the country, but also by a greater demand for housing in the municipality.
Figure 50 | m edian value of sales per m 2 of family homes (€)
Source:
The number of new homes does not change significantly compared to 2022 (Figure 49), with 112 new homes observed in 2023. With regard to new construction licences, it has fluctuated since 2017, with 2022 representing a peak, with the issuance of 362 new licences. In 2023, this value drops by 61.6%, remaining at 224. This significant increase, both in new homes completed and in new construction licences, reflects a dynamism within the construction sector and an active response to the growing housing needs in the Faro and Tavira areas.
Source: INE
Regarding the rental market, in 2023, average prices per square metre continued the growing trend (Figure 51), reaching €7.3/m² in Faro and €9/m² in Tavira, representing increases of 2.5% and 10.7%, respectively, compared to 2022.
Gráfico 7 | Dinâmica das rendas de habitação no concelho de Braga e Guimarães (2017 a 2022; novos contratos, €/m2xmês)
Figure 51 | m edian value of rents per m 2 of new rental contracts (€)
Tavira
Fonte: INE
Source: INE
Faro Tavira
Figure 49 | New constructions and licences for construction within the municipalities of Faro and tavira (n)
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