A report from Berkshire Hathaway HomeServices Portugal Property points to the lack of around 300,000 properties and the pace of construction that is not keeping up with demand for rising housing prices.
The price of houses in Portugal increased by more than 10% in 2023, when compared to the previous year, with the average price being 4,800 euros/m2, and in some regions of the country reaching 10 thousand euros/m2. This is according to the ‘Real Estate Report 2024’, released by Berkshire Hathaway HomeServices Portugal Property, which highlights the city of Lisbon as an attractive real estate market, but which faces the challenge of a significant shortage of properties.
The company’s report, led by millionaire Warren Buffett, indicates that there is a shortage of around 300 thousand properties in the Portuguese capital and the pace of construction is not keeping up with demand for the increase in housing prices, which ends up being reflected in a rise in the house price.
This scenario means that, on the other hand, an annual drop of 25% in housing sales was recorded, and the report continues to look at the Portuguese real estate market as remaining resilient and with good future prospects, particularly with the growing interest of foreigners, where digital nomads are located.
The document states that, currently, there are more than 700 thousand foreigners living in Portugal, and in the last year, 40% of buyers came from the United States, in particular from New York and California, followed by buyers of France and the United Kingdom and where around 80% are looking for single-family homes, mainly townhouses.
Michael Vincent, CEO and president of Berkshire Hathaway HomeServices Portugal Property, says that “Portugal continues to be a reference destination. We are well positioned to face the challenges and capitalize on the opportunities in 2024. Foreigners want to live out their retirement in Portugal.”
