Get up to date on the Portuguese real estate market with our monthly property news round-up. From a surge in tourism numbers to a booming luxury market in the Algarve, Portugal continues to be a hotspot for property investors. With promising increases in new constructions and foreign investments, the country's property sector is thriving.
Plus, discover Portugal's best beaches for 2024, and get clued up on the latest trends in real estate investment for 2024. Stay tuned for all the latest property market insights you need to know this month.
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2023 saw a surge in tourism numbers that looks set to continue in 2024
In 2023, Portugal experienced a remarkable surge in tourism, recording 85 million overnight stays, marking a substantial 10.4% increase from the previous year, according to Eurostat data. This growth not only surpassed pre-pandemic levels by 9.5% but also signals a thriving tourism industry. With such a remarkable influx of visitors, property investors should seize this opportune moment for investment, as the demand for accommodation continues to soar.
Algarve ranks in top 5 flourishing luxury real estate markets in the world
Luxury home values in the Algarve surged by 12.3% in 2023, ranking fourth globally among 100 cities analysed byKnight Frank. Porto and Lisbon also saw increases of 5% and 2.2%, respectively. Despite expectations, luxury markets across the world remained resilient amidst rising interest rates, with 80 out of 100 cities experiencing price stability or growth. The Residencial Prime Internacional Index (PIRI 100) revealed an average 3.1% appreciation across luxury markets worldwide. The Algarve stood out as one of the top destinations, along with Ibiza, Marbella, and Mallorca.
Foreign investment in Portuguese real estate reaches €3.9 billion
Foreign direct investment in Portugal surged to €6.8 billion in 2023 according to Banco de Portugal, with over half, approximately €3.9 billion, attributed to the real estate sector. This demonstrates continued confidence in the Portuguese property market from foreign investors. Unsurprisingly, Greater Lisbon, the North, and the Algarvecaptured 81.6% of this investment.
New construction permits increase by 3.4% in 2023
Portugal is embarking on an ambitious new initiative to address its housing needs, with a surge in home construction projects underway. Recent data from the Housing Statistical Summary, compiled by AICCOPN reveals a promising uptick in new constructions, marking a 3.4% increase compared to the previous year. In total, 31,742 homes were constructed last year, signifying a significant step forward in the country's efforts to meet the growing demand for housing.
Porto and Lisbon are ranked in the top 20 best cities in the world
Time Out have released their top cities to visit in 2024 and Porto and Lisbon were listed at number 10, and number 13 respectively. Each year, Time Out compiles its global city rankings by conducting an extensive survey that gathers insights from locals. What is it about Porto and Lisbon that stands out? 98% of locals think Porto is beautiful, and it’s one of the highest scoring cities for romance, with 82% saying it’s easy to find love in Porto. Locals in Lisbon love the Tagus river views, pastel-painted buildings and all that magnificent golden light.
House prices accelerate in 13 of the most populous Portuguese municipalities
According to data from the National Statistics Institute (INE) published last month, the average price for family homes is on the rise, hitting €1,641 per square metre – a 10% increase from last year. While some areas like Barcelos and Guimarães (pictured) saw significant growth, others, such as Funchal and Lisbon experienced a slight slowdown, offering potential buyers more favourable pricing. Lisbon, Cascais, and Porto continue to remain Portuguese property hotspots with the highest housing prices, making them the most desirable locations to invest.
Trip Advisor & Lonely Planet announce their best beaches in the world - and two of them are located in the Algarve
Praia da Falésia (pictured) was crowned number one in Tripadvisor's Best Beaches in the World list for 2024. Based on an analysis of all the reviews left on Tripadvisor for beaches globally over one year, the award reveals the beaches that were the highest rated by travellers who visited. Renowned for its scenic beauty and commitment to preserving natural habitats, this Algarve gem rose from number six to claim the coveted spot for the first time. If you want to own a holiday home close to the world’s best beach, check out our properties for sale in Albufeira and Vilamoura. Not to be outdone, Lonely Planet also recently released their top beaches in 2024 list, with Praia do Camilo in Lagos making it into the Europe category. If you want to buy property near this beautiful beach check out our listings in Lagos.
Real estate investment expected to rise by 12.5% this year
Consultancy firm CBRE has forecast a positive outlook for the hospitality and property sectors in Portugal in 2024. Despite a 50% drop in commercial real estate investment in 2023, the experts anticipate a 12.5% recovery to €1.6-1.8 billion. Persistent high interest rates, product shortages and sustainability priorities present ongoing challenges but the outlook is hopeful for 2024 and beyond.
Portugal among the most sought-after destinations for real estate investment in 2024
Savills World Research forecasts a surge in global real estate investment in 2024, with Portugal emerging as a prime destination, notably due to its tourism potential. They are anticipating a positive property investment environment, with multifamily residential and logistics sectors projected to experience rental price hikes, driven by robust consumer demand post-COVID-19.
Find your sunshine for less with our carefully curated list of the latest budget properties for sale in Portugal this month.
From a four bedroom cottage in the tranquil countryside of Tomar to a charming three bedroom villa located in Amares, here are our favourite budget properties for sale in Portugal this month.
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