The housing shortage in Portugal is driving home prices up by 10%.

Portugal continues to be an attractive country for living and investment, despite the uncertain economic and political situation. However, the lack of housing for sale remains a structural problem with no end in sight, as the construction of new homes does not meet demand. This is where the housing crisis in Portugal lies: even with a 25% decrease in housing sales in 2023, prices have risen by more than 10%, reflecting a real estate shortage, according to a study by the real estate agency of billionaire Warren Buffett.

Prospects for real estate in Portugal in 2024

Although the prospects for the Portuguese real estate market in 2024 look promising, home sales in Portugal have decreased by 25%, according to the 2024 real estate report prepared by Berkshire Hathaway HomeServices, Buffett's agency. This decline in housing transactions reflects a decrease in demand for housing in the country, which has not been sufficient to lower property prices, even in the more expensive segment of the market.

The real estate market in Lisbon

In 2023, "prices have risen by more than 10% compared to 2022, raising the average price per square meter to 4,800 euros, with peaks of up to 10,000 euros in some areas," notes Cesar Santos, owner and CEO of Berkshire Hathaway HomeServices Atlantic Portugal, as quoted in a press release.

Foreigners help to look at 2024 with optimism.

Despite global uncertainties, Michael Vincent, CEO and President of Berkshire Hathaway HomeServices Portugal Property, remains optimistic about the Portuguese market: "Portugal continues to be a key destination. We are well-prepared to overcome challenges and seize opportunities in 2024. Foreigners want to spend their retirement in Portugal," he stated.

• The Lisbon real estate market is highlighted in the report as "attractive, but characterized by a huge challenge: a significant shortage of properties."
• Today, more than 700,000 foreigners live in Portugal, who appreciate the climate, low crime rate, and the beauty of the Portuguese coastline.
• Americans are the most active foreign buyers of real estate in Portugal, accounting for 40% of all foreign purchases.