Housing prices in Portugal 2023: a decline in prices on the horizon

According to data from the rating agency Moody's, a correction in housing prices will become a reality in Portugal in 2023, which means that a decline in prices could happen in the near future. The global macroeconomic context has changed, and its implications for the real estate market in Portugal and around the world are becoming increasingly evident.

According to experts, Portugal will not avoid a correction in housing prices in the foreseeable future, which means that real estate prices in Portugal may start to decline in 2023.

Furthermore, according to the published analysis, real estate prices are influenced by the economic slowdown, rising interest rates, and inflation, which“It squeezes household budgets and increases debt servicing costs, which undermines demand in the market and puts pressure on prices.”.

However, a lack of supply may limit the decline in housing prices in Portugal in 2023."One of the factors supporting housing prices in Portugal is the limited supply, primarily of new construction. The shortage of new housing compared to the level of demand has sustained the Portuguese real estate market and contributed to price increases in recent years."", it is stated in the publication.