Houses for sale in Portugal: the supply has increased by 10% over the past year.

Portugal has seen a lack of affordable housing in the real estate market due to strong demand, especially for affordable prices. However, the final quarter of the year brought good news: the supply of homes for sale in the fourth quarter of 2023 increased by 10% compared to what was available in the same period of 2022, according to Idealista research. In addition to the arrival of new properties on the market, both new builds and renovations, as well as the entry into force of the Mais Habitação program, the decrease in demand for housing due to the climate of uncertainty, rising interest rates and loss of purchasing power can also explain this increase in supply by reducing the number of transactions.

The supply of homes for purchase is increasing in 12 major cities. Leading the list is Leiria (42.6%), followed by Évora (37.3%), Viana do Castelo (34.7%), Portalegre (25.3%), and Viseu (23.3%) as major cities where the stock of affordable housing has grown. They are followed by Braga (23%), Vila Real (22%), Beja (21.7%), Setúbal (19.1%), Faro (15%), Castelo Branco (11%), and Coimbra (10.3%).

On the other hand, seven cities also saw a decrease in the supply of affordable housing for purchase during this period.

There are more houses for sale in almost all districts and islands. Looking at the districts and islands of Portugal with representative samples, it can be observed that the number of houses for sale has increased in almost all areas over the past year, with Castelo Branco (17.8%) leading the growth. The growth rate of houses available for purchase is also led by Leiria (24%), Faro (19.9%), Beja (19.7%), Évora (19.2%), Portalegre (17.8%), Viana do Castelo (17.2%), Viseu (16.5%), Setúbal (15.4%), Vila Real (14.4%), Bragança (13.8%), Braga (12.8%), and Lisbon (8.1%). The increase in houses on the market was less significant in Coimbra (5.8%), Aveiro (4.1%), the island of Madeira (3.1%), Porto (2.9%), and Santarém (1.7%). It should be noted that in one of the islands, the supply of houses for sale has decreased over the past year: on the island of São Miguel, it dropped by 14.7%, concludes the study.