Residential Real Estate - Portugal

Portugal is projected to witness significant growth in its Residential Real Estate market market.
By 2024, the market value is expected to reach US$1.33tn in the country.
This growth is anticipated to continue with an annual growth rate of 5.68% from 2024 to 2029.
By the end of this period, the market volume is estimated to reach US$1.76tn in Portugal.
When compared globally, it is important to note that China is expected to generate the highest value in the Real Estate market.
In 2024, China's Real Estate market value is projected to be a staggering US$112.9tn, significantly surpassing other countries, including in Portugal.
The demand for luxury apartments in Portugal has surged, driven by foreign investors seeking a high-end real estate market.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

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

Customer preferences: Customers in Portugal have shown a strong preference for residential properties in urban areas, particularly in major cities such as Lisbon and Porto. This is due to the convenience and accessibility of these locations, as well as the availability of amenities and services. Additionally, there is a growing demand for properties with modern designs and features, as well as those that offer energy efficiency and sustainability.

Trends in the market: One of the key trends in the residential real estate market in Portugal is the increase in foreign investment. Portugal's Golden Visa program, which grants residency to non-EU citizens who invest in the country, has attracted a significant number of foreign buyers. These buyers are often looking for properties for investment purposes or as second homes. This trend has contributed to the overall growth of the market and has driven up prices in certain areas. Another trend in the market is the rise of co-living and co-working spaces. With the increasing number of remote workers and freelancers, there is a growing demand for flexible living and working arrangements. Co-living spaces, which offer shared living spaces and amenities, and co-working spaces, which provide shared office spaces, have become popular options for these individuals. This trend has led to the development of new residential projects that cater specifically to this market segment.

Local special circumstances: Portugal has a unique advantage in the residential real estate market due to its attractive tax incentives for foreign investors. The Non-Habitual Resident (NHR) program, for example, offers tax benefits to individuals who become tax residents in Portugal. This has made the country an appealing destination for retirees and high-net-worth individuals looking to relocate or invest in real estate.

Underlying macroeconomic factors: The growth and development of the residential real estate market in Portugal can be attributed to several underlying macroeconomic factors. The country has experienced a period of economic stability and growth in recent years, which has increased consumer confidence and purchasing power. Additionally, low interest rates and favorable mortgage conditions have made it easier for individuals to access financing for property purchases. Furthermore, Portugal's tourism industry has been thriving, attracting a large number of visitors each year. This has created opportunities for short-term rentals and vacation homes, further driving demand in the residential real estate market. Overall, the residential real estate market in Portugal is experiencing growth and development due to customer preferences for urban properties, the increase in foreign investment, the rise of co-living and co-working spaces, attractive tax incentives, and underlying macroeconomic factors such as economic stability, low interest rates, and a thriving tourism industry.

Data coverage:

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

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, 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:

Data is modeled using current exchange rates. 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.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate - Portugal

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Real Estate Type

Living Space

Methodology

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