the predictions for the 2023 housing market in Portugal? Is it better to rent
or to buy? How are prices being affected due to rising interest rates,
inflation, and the war in Ukraine? These are questions frequently asked by
foreigners seeking guidance in unfamiliar territory.
sentiment is that there is strong demand for listings, and new construction is
not sufficient to meet the demand. This leads to increasing prices of existing
inventory and with an inflation rate of 9.6% and average mortgage rates of 4%,
the highest observed since 2015, buying property continues to be more and more
first three months of the year, the price of houses rose 17.2% compared to the
same period last year. Despite this trend, there has been a significant
increase in foreign real estate investment in Portugal over the last few years,
particularly in the luxury housing sector.
pronounced trend in the market is the dramatic escalation in 2022 from North
American investors due to major fluctuations in the stock market, political and
social unrest, and a growing preoccupation with safety, health care, and cost
of living. Portugal is often compared to California and Florida because of its
temperate climate and diverse landscapes. Cities such as Miami, New York, and
San Francisco have begun to see price deflations, an increase in
days-on-market, and below-asking price offers.
immigration has had a significant effect on luxury housing prices in Portugal,
where buyers frequently are not dependent on mortgages and are able to pay
cash. In a market where the demand is considerably greater than the supply,
all-cash purchases are a trend likely to continue.
housing costs and a shortage of inventory, many are turning to leasing, only to
be overwhelmed with the high price of rentals. According to Idealista, an
online housing portal in Portugal, there is a shortage of houses to rent in the
residential market, with demand far outpacing the number of properties. Between
the third quarter of 2022 and the same period in the previous year, the supply
of houses for rent in Portugal fell 53%, and homes are on the market for less
and less time, despite the much higher prices. According to Idealista, around
19% of homes let through their portal during October were on the market for
less than 24 hours.
should stop being touted for cheap housing, particularly in the areas of
Lisbon, Porto, and the Algarve, and start to be recognized for the spectacular
and affordable quality of life it offers. More and more investors are
recognizing the value of putting their capital into real estate in a country
that is in a privileged geographical position, with a solid health care system,
a peaceful population, and only a few hours by plane from numerous E.U.
capitals and the U.S. East Coast.
climate, visas, housing, healthcare, cost of living, the price of housing, and
a friendly, generally English-speaking population, International Living
Retirement Index rated Portugal the number one place in the world to retire in
be misguided into thinking it's only for retirement. Portugal offers optimal
living for families, digital nomads, and young professionals, and is a friendly
environment for businesses and startups. As an American that moved to Portugal
six years ago, I have found Portugal to be a hospitable environment for
business with exceptional quality of life and I feel very fortunate to call
this country my new home.
move or invest in Portugal? email@example.com
Brightman, CEO of Brightman Group