Last updated December 31, 2019

Real estate in Portugal remains strong. This strength comes from improving economical factors, as well as from a rising demand of foreign buyers.

Global Analysis

SALES
According to data from the National Statistics Institute (INE), house prices have risen 10,3% in the 3rd quarter compared to last year. In the same period, existing house prices have risen more than new house prices, 10,6% and 9,3%, respectively. Transactions value came close to 6.5 billion €, 3,0% more than 2018’s 3rd quarter.

Compared to the previous quarter, the price has risen 1,2%. Existing houses have registered a growth of 1,4% and the new houses 0,3%.

But although these increases have been registered, the number of sold houses is falling. Between July and September 2019 45.830 transactions were made, which represents a 0,2% decrease compared to the same period in 2018.

RENTAL
Compared to the previous quarter, the rental transactions’ value has risen 6,6%. The growth of the transactions’ value was registered in both types of houses, 7,0% on existing houses and 4,8% on new ones.

Evolution of rental sale values in the last 8 quarters

A look by region

SALE
Lisbon’s metro area and the northern region of Portugal continue to lead the market. Between July and September of 2019, Lisbon’s metro area, with a total of 15.489 transactions, and the north region of the country, with 13.302, represented 62,8% of all the house transactions. However, one can observe a decrease of 0,3% on the respective regional shares. There is also a slight slope of the Algarve share where 3,334 sales have been registered.

In the center region of the country 9.079 have been transacted and 3.074 in Alentejo, representing a sales rise in these two regions.

RENTAL
On the 3rd quarter of 2019, the transactions related to housing values in the Lisbon metro area amounted to 3 billion euro, representing 46,6% of the total value, less 3% compared to the same period last year.

The north of Portugal, center and the Alentejo region have registered 1.5 billion euro, 850 million euro and 260 million , respectively. In these three regions there were observed increases of the relative shares of 0,6%, 2,2% and 0,3%, respectively.

In Algarve, the transactions value came close to 632 million euro, which corresponds to 9,8% of the total value, meaning less 0,3% regarding the same period of last year.

House sales in Azores have accounted to 73 million euro, and in Madeira they have surpassed 103 million euro.

Relative distribution of the number and value of sales by region in the 3rd quarter of 2019:

Foreign Investment

In 2018, foreign investors have represented 8,2% of transactions regarding real estate in Portugal, which corresponds to 13% of the total value of transactions. More than 3/4 of the purchases’ value by non residents are concentrated on the Lisbon metro area (39,5%) and in Algarve (35,9%). It was also on the Lisbon metro area that the average purchase value was higher (322.500€).

Just like last year, French residents were the ones that purchased the most real estate, 19,7% of total value, followed by the UK with 6,9%, Brazil with 8,3%, China with 5,1% and Germany with 4,9%.

However, in terms of transactions of real estate the order is different, France stands out with around 5.600 properties sold, 28,2% of the total value, followed by the UK with around 3.000 sold, which corresponds to 14,9%, Switzerland with 7,7%, Germany with 6% and Brazil with 4,9%.

Value and proportion of acquired real estate by non residents:

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