The shortage of real estate in Portugal is leading to a 10% increase in housing prices.

Portugalcontinues to be an attractive country to live and invest in, despite the uncertain economic and political context. However, the problem of lack of housing for sale is a structural problem with no apparent end in sight as new construction fails to meet the country's demand. That is where the housing crisis lies inPortugal: despite the decline in saleshousesby 25% in 2023, prices have risen by more than 10%, reflecting the shortage ofreal estate, the study shows.agenciesbyreal estatebillionaire Warren Buffett.

Although the outlook for 2024 in the Portuguese market is.real estatepromises to be good, the truth is that saleshousesinPortugalfell about 25 percent, as shown by the Report on thereal estate2024 prepared by Berkshire Hathaway HomeServices,agency real estateowned by Buffett. It's a drop in housing transactions inPortugalreflects a decrease in demand forhousesin the country, which has not been sufficient to lower housing costs, even in the more expensive segment of the market.

In 2023, “prices have increased by more than 10% compared to 2022, raising the average price per square meter to 4,800 euros, with peaks up to 10,000 euros in some areas,” emphasizes Cesar Santos, CEO of Berkshire Hathaway HomeServices Atlantic Portugal, quoted in the statement. This is primarily because.Portugalsuffers from a structural supply deficithousesfor sale.

At the marketreal estate Lisbonhighlights the fact that it is “attractive but characterized by a huge challenge: a significant shortage ofreal estate“. Only in the capital there is a shortage of about 300 thousand objectsreal estateand the pace of construction has not kept pace with demand, resulting in “significant price increases”. This whole scenario, coupled with the current political and economic instability, “has contributed to a significant decline in salesreal estatein 2023,” the document concludes.

Foreigners are helpingPortugalLooking ahead to 2024 with optimism

Despite global uncertainties, Michael Vincent, CEO and President of Berkshire Hathaway HomeServices Portugal Property, looks at the Portuguese market with confidence: ”Portugalcontinues to be the benchmark direction.

We are well prepared to meet the challenges and seize the opportunities in 2024. Foreigners want to spend their retirement inPortugal”,” he states.

Therefore, the increasing interest of foreigners, including digital nomads, is one of the reasons why experts are looking at the Portuguese marketreal estatewith optimism - despite the end of the golden visa and non-resident regime programs a few months ago. According to the report, today'sPortugalis home to more than 700,000 foreigners who appreciate factors such as climate, low crime and the beauty of the Portuguese coast. And they prefer, above all, to buyhousesnearLisbonand the Cascais.

The odd one out here is the characteristic that Americans are the most active foreign buyers. “In 2023, 40 percent of foreign buyers came fromU.S.mostly fromNew YorkandCaliforniafollowed by buyers fromFranceand the UK. Many of these buyers plan to rent theirhousesfor rent, solooking forfacilitiesreal estatein excellent condition,” the document said.