'Real estate has reversed the growth cycle'

Real estate sales through the Century 21 network fell 4.8% in the final quarter of the year, while prices fell 5.1%. This is due to rising interest rates, which have already begun to affect the market.

The last quarter of 2022 has already shown signs of a reversal of growth in the Portuguese real estate market. In these months, traditionally considered the best of the year for the sector, the Century 21 Portugal network recorded a 4.8% decline in the number of sales transactions compared to the previous quarter, while the average value of properties sold fell by 5.1%. Leasing transactions decreased by 12%.

In the context of rising interest rates on home purchases, as well as the lending restrictions imposed''s macroprudential measures by the Bank of Portugal, the Portuguese are expected to curb their intentions to buy a house this year. Century 21 says these factors will "limit the purchasing power of the Portuguese and limit the value of the real estate they can buy. "+

The real estate network, run by Ricardo Sousa, admits that "current market circumstances will not allow the level of price increases recorded in 2022 to be achieved." However, also "no real decline in housing values is expected". Currently, the suburban areas of the country's main cities could face more pressure due to the decentralization of demand, which could lead to higher prices. The rising cost of living and the difficulty of many families in obtaining a housing loan''should lead to increased demand for rental housing. In this market and because of these possible pressures, Century recognizes the possibility of higher rental prices.

foreigners accounted for 18 percent of sales.

Last year, Century 21 earned 94.7 million euros, 24% more than the 76 million earned in the previous year.

Last year, Century 21 Portugal grew its network with 29 new franchise contracts and now has 212 operating units,''which has about 4,500 employees, including loan brokers and real estate agents.