Falling supply: residential property listings fall 9.1% in the first half of 2025
- Redação Mudei e Agora
- Sep 9
- 2 min read
The Portuguese real estate market faces a new sign of pressure: an analysis by eXp Portugal, published by Diário Imobiliário, reveals that the number of residential property listings fell 9.1% in the first half of 2025.
This decline confirms a structural problem already identified by experts—the scarcity of available supply—and reinforces the imbalance between demand and availability, which has fueled the continued rise in housing prices.
The numbers of the decline:
National decline: -9.1% in total residential listings.
Most affected regions:
Madeira: -12.4%
Setúbal: -12.1%
Coimbra: -11.1%
Porto and Leiria: -10.7% each
Lisbon: -8%—less pronounced, but significant given the size of the market.
These figures reveal that the shortage is not limited to large urban centers, but affects several regions of the country, including traditionally more affordable areas.
Why is supply decreasing?
Construction costs
With rising construction costs (as we saw in the previous summary), many developers are postponing projects or focusing on luxury segments, reducing the available supply in the mid-range segments.
Slow licensing
Slow urban planning licensing processes hinder the entry of new projects into the market.
Short-term rentals
A significant portion of the housing stock is channeled into tourist rentals, especially in coastal and urban areas.
Retention strategy
Some owners prefer not to put properties on the market, waiting for further appreciation.
Consequences for the real estate market
Price pressure
With less supply, prices tend to rise. Data from the INE confirms that, in the first quarter of 2025, house prices increased 6.6% compared to the previous quarter, the highest rate since 2007.
Rental Difficulties
The shortage also impacts the rental market, with a general increase in rents, especially in the metropolitan areas of Lisbon and Porto.
International Investment
The reduction in supply does not appear to deter foreign investors, who continue to see Portugal as an opportunity for appreciation, but it exacerbates the problem for Portuguese residents.
What can be done?
Accelerate Licensing
Simplify and digitize licensing processes to allow more projects to reach the market in a timely manner.
Incentivize affordable housing
Create tax and credit support programs targeted at developers who invest in affordable housing.
Regulate Tourist Rentals
Review the limits on local accommodation in areas under strong urban pressure, balancing tourism and permanent housing.
Promoting Partnerships
Foster public-private partnerships (PPPs) for the construction of affordable housing, with mandatory quotas for new developments.
Outlook for the Second Half of 2025
The downward trend in residential listings may continue, especially if construction costs continue to rise and there are no structural reforms in licensing.
The government has signaled new measures to increase supply, including urban rehabilitation programs and new financing lines for affordable housing. However, experts warn that without swift and effective implementation, housing affordability problems will persist.
Conclusion
The 9.1% drop in the number of residential listings in the first half of 2025 is a clear warning: supply is increasingly scarce, and this widens the gap between growing demand and real opportunities for access to housing.
Without measures to stimulate construction and renovation, and without effective market regulation, prices will continue to rise, making the dream of owning a home (or even a stable rental) increasingly distant for many Portuguese families.
Source: Diário Imobiliário / eXp Portugal
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