The Portuguese housing market has shown remarkable resilience, ending 2024 on a high note with strong expectations for 2025, according to the latest December 2024 Portuguese Housing Market Survey from RICS and Confidencial Imobiliário. The report highlights an 11% increase in property prices year-on-year and a 27% surge in sales volumes, underscoring the market’s robust performance.
Ricardo Guimarães, Director of Confidencial Imobiliário, attributes the rise in demand to falling interest rates and strong buyer responses. He notes that both families and investors have quickly capitalised on the shift in market conditions, contributing to a sharp rise in transaction activity.
In the Algarve, the region most sought after by international buyers, Kronos Homes has seen firsthand the strengthening demand for homes. Alda Filipe, the firm’s first female Partner in Portugal, highlights the growing interest in properties across the region. “We’re seeing buyers from all over the world snap up everything from beachside apartments to spacious villas,” Filipe says. “The demand for off-plan homes is particularly strong, which is why we’re investing more than 200 million euros in new luxury residences in Vale do Lobo, one of the Algarve’s most prestigious resorts.”
As the Algarve continues to attract international buyers, the Portuguese housing market remains buoyed by solid domestic demand. Tarrant Parsons, Head of Market Analytics at RICS, explains that Portugal’s strong economic performance, driven by both domestic growth and a thriving tourism sector, positions the country to outperform the rest of the Eurozone in 2025. “With macroeconomic headwinds easing and policy rates likely to be lowered, Portugal is well-positioned to maintain its solid performance,” Parsons says.
The latest survey also shows increased buyer enquiries, with new inquiries up 6% in December 2024. Looking ahead, both sales and price expectations remain positive, with strong projections for the first quarter of 2025. With demand spanning all types of property in the Algarve, market experts are confident that the coming year will be another strong one for the Portuguese housing market.
“Expectations for 2025 are incredibly positive,” says Alda Filipe. “Demand is broad-based across all property types in the Algarve, and we anticipate another strong year for the market.”
As the market continues to build momentum, Portugal’s appeal to both domestic and international buyers is set to drive further growth, making it an exciting year ahead for the housing sector.
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