'Prices are rising, but Brazilians are still looking for real estate in Portugal.'

Rent prices in Portugal rose by 7.7% in 2021. This rise was driven by an 8.3% increase in the last quarter of the year. The average cost per square meter to rent is €6.04.

The information was reported by the National Institute of Statistics (INE) last week, and it also shows that the number of new contracts signed in the last quarter increased by 4% compared to 2020. The data helps explain the reason for the intense demand for real estate, which has not abated even during the restrictions due to the coronavirus pandemic, and allows prices to rise.

Despite the record sale price of €1,314 per square meter in the Algarve, which is reflected across the country, Brazilians''remain the leaders in real estate purchases at the consulting company JLL, assures director Patricia Baran. "Brazilians continue to be the number one nationality in real estate sales at JLL," said Baran.

The shortage of living space

The consultant explains that there is virtually no affordable housing for rent in the centers of big cities. "The market is very dynamic and demand continues to outstrip supply. Consequently, rental prices reflect this reality.

She also explains that there are various options for sale, both new construction and used housing, but the supply of real estate is not enough to meet demand. "Over the past ten''years, supply grew by 1.9%. This is very small compared to demand. In other words, demand has doubled while supply has only grown by 1.9%. Portugal is under scrutiny," said Baran.

The benefits of investing in Portugal

Despite rising prices, Global Trust, a company specializing in real estate investment in Portugal, said the country is one of the most attractive in Europe, according to director Cesar Damion. "Our clients get loans with annual interest rates of around 1% and only need to hold 25% of their own funds. In addition, Portugal has very attractive prices per square meter, well below the average of other European Union countries," he told''Damion.

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The director explains that the supply of real estate is proportional to the size of Portugal. "The Portuguese real estate market is characterized by a limited supply that is proportionate to the size of the country and in line with the Portuguese urban planning standard," explained Damion.

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