Key regions: Japan, China, Australia, Germany, United States
The Residential Real Estate Leases market in Portugal has been experiencing significant growth in recent years, driven by a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors.
Customer preferences: In Portugal, there is a growing trend among individuals and families to opt for residential real estate leases rather than purchasing properties. This shift in preference can be attributed to several factors. Firstly, leasing provides greater flexibility, allowing individuals to easily move to different locations or upgrade to larger properties as their needs change. Additionally, leasing eliminates the need for a large upfront investment, making it a more affordable option for many people. Furthermore, leasing provides access to a wider range of properties in desirable locations, as some areas may have limited availability of properties for sale.
Trends in the market: One of the key trends in the Residential Real Estate Leases market in Portugal is the increasing demand for rental properties in urban areas. This can be attributed to the growing trend of urbanization, with more people moving to cities for employment and educational opportunities. As a result, there is a higher demand for rental properties in city centers or areas close to major business districts and universities. Additionally, there is a trend towards smaller, more compact living spaces, as individuals and families prioritize convenience and proximity to amenities over larger homes.
Local special circumstances: Portugal has seen a surge in tourism in recent years, with the country becoming a popular destination for both leisure and business travelers. This has led to an increase in the demand for short-term rental properties, such as vacation homes and serviced apartments. Many property owners in Portugal have taken advantage of this trend by renting out their properties on platforms like Airbnb. This has created a unique market dynamic, with some properties being used for both short-term rentals and long-term leases, depending on the season and demand.
Underlying macroeconomic factors: The Residential Real Estate Leases market in Portugal has also been influenced by underlying macroeconomic factors. The country has experienced a period of economic growth and stability, which has increased consumer confidence and disposable income. This has led to a higher demand for housing, both for purchase and lease. Additionally, low interest rates have made it more attractive for individuals to finance their housing needs through leasing rather than taking on a mortgage. The government has also implemented policies to support the rental market, such as introducing tax incentives for landlords and implementing regulations to protect tenants' rights. Overall, the Residential Real Estate Leases market in Portugal is experiencing growth due to customer preferences for flexibility and affordability, the trend towards urban living, the special circumstances of tourism, and the favorable macroeconomic conditions. These factors have created a thriving market for residential real estate leases, with a wide range of options available to meet the diverse needs of individuals and families in Portugal.
Data coverage:
Figures are based on total and average revenue of residential apartment leases.Modeling approach:
Market size is determined by a 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 considered at a country-specific level.
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