House prices in Portugal are expected to rise by 8.7 % by 2024 regardless of the cancellation of the golden visa program.

Lisbon and the Algarve, chosen by foreign buyers, are Portugal's most popular regions in terms of property price growth, says a report from Property Market-Index published on Tuesday.

In the past 12 months, the average property value in the country has risen by 6.5%. However, in the Algarve - Portugal's southernmost region, known for its beaches and golf resorts - prices rose 15% over the same period, the research firm said.

In the capital Lisbon and its surrounding areas such as Cascas, Comporta, Estoril and Sintra, property values "also rose significantly," the report said.

According to the report, Portugal is benefiting from a "triple whammy" of international investment, regeneration and tax breaks for wealthy foreign nationals.

But it was shut down earlier this month over concerns that foreign buyers had driven up house prices and made the process of buying property difficult for Portuguese citizens. However, experts said the abolition of the visa program is unlikely to affect property values, as reported by Mansion Global earlier this year.

What is affecting prices, however, is a lack of new construction not meeting demand - recent data from the National Statistics Institute showed that housing starts are declining as 10 homes sold for every new home built between 2018 and 2022.

In light of limited new construction, Property Market-Index predicts that home prices in many of these desirable neighborhoods will increase by about 8.7 percent in 2024.

Quinta do Lago

Quinta do Lago in the Algarve ranks as the most popular area to buy real estate based on factors such as investment potential, cultural offerings, infrastructure and amenities.

This resort, located in the protected natural coastal area of the Ria Formosa Natural Park, is home to affluent residents, offers many professional golf courses and is known as the Beverly Hills of the Algarve.

The value of property in the area has risen by more than 28% since 2020 and is expected to rise another 19% by 2025, the report says.