Shortage of properties causes house prices to soar

In the most recent Real Estate Report 2024, from Berkshire Hathaway HomeServices, the real estate agency points out that the scarcity of properties is causing house prices to soar in Portugal.

According to this report, around 300 thousand properties are missing and the construction pace is not keeping up with demandwhat results in a significant increase in prices. This situation, associated with the current political and economic instability experienced in the country, contributed to a significant decrease in property sales in 2023.

The Berkshire Hathaway HomeServices report mentions a 25% decrease in sales in 2023although it is considered that the Portuguese real estate market remains resilient and has good prospects.

One of the reasons given for this optimism is the growing interest from foreignersincluding digital nomads, who have boosted the Portuguese real estate market. Currently, there are more than 700 thousand foreigners living in Portugal and who value factors such as the climate, low crime and the beauty of the Portuguese coast.

Buyers seek energy-efficient homes

The report also highlights that buyers in Portugal look for modern, energy-efficient homespreferably located in privileged regions such as Lisbon and Cascais.

In 2023, 40% of buyers came from the USAparticularly from New York and California, followed by buyers of France and the United Kingdom. Many of these buyers intend to rent their homes and therefore look for properties in excellent condition. About 80% look for single-family homesmainly housing.

Last year, «prices have increased by more than 10% compared to 2022, driving the average price per square meter to 4,800 euros, with peaks of up to 10,000 euros in some areas», highlights César Santos, owner and CEO of Berkshire Hathaway HomeServices Atlantic Portugal.

Despite global uncertainties, Michael Vincent, CEO and President of Berkshire Hathaway HomeServices Portugal Property, considers 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».