Prices, rents and interest rates: the real estate market in 2024.

The real estate sector in Portugal continues to attract attention, and as 2024 approaches, it is important to take a closer look at the predictions and analyses that will define the year.

Various factors such as home prices, interest rates, and political instability in our country play an important role in market dynamics.

Thus, when we analyze house prices closely, we see a trend towards a slowdown in growth, but not a reversal. The interior and regions adjacent to major cities continue to lead the way, driving moderate price growth. However, metropolitan areas such as Lisbon and Porto seem to be heading towards stabilization, indicating a consolidation phase after years of rapid expansion.

In terms of rental rates, forecasts suggest a more moderate increase of between 6 and 8%. This increase, while notable, reflects a slowdown from previous years as we are already at a high level of rental rates.

On the other hand, with the stability of interest rates, rental demand may slow down a bit due to the migration of potential tenants to buying opportunities, which may become more attractive again.

In this context, the European Central Bank (ECB) plays an important role in expectations for 2024.

The possibility of lowering these rates is currently being discussed, fueling hope for slightly more attractive lending costs. This development could have a positive impact on the real estate market, at least that is expected, stimulating more activity and an increase in the number of transactions compared to the previous year.

This year, there have also been attempts to simplify the residential licensing process through the Simplex program. However, industry experts still have some concerns, but the fact is that there are discussions going on around this topic, which is positive.

Overall, trends for real estate in Portugal in 2024 point to stabilization with moderate house price growth, more controlled rental increases, the prospect of more affordable interest rates and an increasing amount of discussion on the topic of housing.

However, it is certainly important to be alert to changes in economic and political conditions that may shape and adjust these forecasts during the year.

Be proactive, keep an eye on home prices in the region where you are looking, and count on the support of real estate advisors who, in addition to local market knowledge, provide reliability in one of the most difficult processes in our lives - finding a home.

Opportunities still exist, but it's incredibly important to be ready to seize them.

Sylvia Bozzo

Marketing Manager at Imovirtual

*The text is written in accordance with the new spelling agreement.