Real Estate - Portugal

Portugal

The Real Estate market market in Portugal is expected to see impressive growth in the coming years.
By 2024, the market is projected to reach a value of US$1.52tn.
Among the different segments of the market, Residential Real Estate holds the largest share, with a projected market volume of US$1.21tn in 2024.
Looking ahead, the market is anticipated to maintain a steady growth rate.
The annual growth rate, also known as the Compound Annual Growth Rate (CAGR), is estimated to be 3.73% from 2024 to 2028.
This growth trajectory indicates that the market volume will reach US$1.76tn by 2028.
In a global context, it's worth noting that China will continue to dominate the Real Estate market market.
The projected value of Real Estate market China is expected to be US$135.70tn in 2024.
This demonstrates the significant scale of China's Real Estate market sector compared to other countries.
The real estate market in Portugal is experiencing a surge in demand from international investors seeking attractive investment opportunities in the country's growing economy.

Key regions: United States, China, Japan, Germany, United Kingdom

Market

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Analyst Opinion

The Real Estate market in Portugal has been experiencing significant growth and development in recent years.

Customer preferences: One of the key factors driving the growth of the Real Estate market in Portugal is the increasing demand from both domestic and international buyers. Portugal has become a popular destination for tourists and expatriates, who are attracted by its beautiful landscapes, rich history, and affordable cost of living. As a result, there has been a growing interest in purchasing properties in Portugal, whether as holiday homes, retirement residences, or investment properties.

Trends in the market: One of the major trends in the Real Estate market in Portugal is the rise of tourism-related investments. The country's tourism industry has been booming in recent years, with a record number of visitors coming to Portugal. This has led to a growing demand for accommodation, particularly in popular tourist destinations such as Lisbon, Porto, and the Algarve. As a result, there has been a surge in the construction of hotels, resorts, and vacation rental properties, catering to the needs of both tourists and investors. Another trend in the Real Estate market in Portugal is the increasing popularity of urban living. Many young professionals and families are choosing to live in cities, attracted by the vibrant cultural scene, job opportunities, and amenities. This has led to a high demand for residential properties in urban areas, particularly in Lisbon, which has experienced a significant rise in property prices in recent years.

Local special circumstances: Portugal has implemented several initiatives to attract foreign investors and stimulate the Real Estate market. One of the most notable programs is the Golden Visa scheme, which offers residency permits to non-European Union citizens who invest in Portuguese properties. This has attracted a significant number of foreign buyers, particularly from countries such as China, Brazil, and Angola.

Underlying macroeconomic factors: The growth of the Real Estate market in Portugal can be attributed to several underlying macroeconomic factors. The country has experienced a period of economic stability and recovery since the global financial crisis, with steady GDP growth and declining unemployment rates. Low interest rates and favorable mortgage conditions have also contributed to the affordability of housing, making it an attractive investment option for both domestic and international buyers. In conclusion, the Real Estate market in Portugal is experiencing significant growth and development, driven by increasing demand from both domestic and international buyers. The rise of tourism-related investments and the popularity of urban living are key trends in the market. Special initiatives to attract foreign investors, such as the Golden Visa scheme, have also played a significant role. Underlying macroeconomic factors, such as economic stability and low interest rates, have further contributed to the growth of the market.

Methodology

Data coverage:

Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.