Home Sales in Portugal: Stability and Confidence Despite High Interest Rates

Despite global economic uncertainty, Portugal’s property sales market remains stable and resilient. In the first quarter of 2025, approximately 40,750 homes were sold across mainland Portugal—a slight decline from the previous quarter but still a strong indicator of market health.

Lisbon, Porto, and the Algarve continue to lead in transaction volume, bolstered by their touristic appeal and consistent foreign investment. Demand remains strong despite higher interest rates, suggesting that many buyers are financially prepared and strategically timed in their purchases.

Foreign buyers—particularly from France, Brazil, Germany, and the U.S.—continue to be a key driver of activity. Portugal is still seen as a safe and attractive destination with a high quality of life, mild climate, and competitive cost of living within the EU.

Another encouraging sign is price stability. Although there have been modest increases, the market does not show widespread speculative behavior. In fact, some new-build projects are selling out during the planning phase, demonstrating buyer confidence.

However, experts warn of growing housing inequality. Rising prices in central urban areas are making it increasingly difficult for young people and middle-class families to purchase homes. Solutions may include government-backed loan programs, co-ownership models, and incentives for development in emerging cities.

🔗 Source: Casa Sapo

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