Real estate: residential real estate market resilience persists

Despite challenging market factors, the residential real estate market in Portugal remains resilient, especially in the premium segment, according to a new report by Savills Portugal.

The number of residential real estate transactions decreased by 19% in the first half of 2023 compared to the first half of 2022, from 82,752 properties sold in mainland Portugal to 66,624 closed transactions to date.

By the end of the first half of 2023, the highest number of transactions took place in the Portuguese capital, with 4,387 homes sold, a difference of 27% compared to the first half of 2022 (5,963).

Miguel Lacerda, Lisbon's director of residential real estate, says:

"These figures are not surprising as the market is still in a period of greater caution and attention from potential buyers. In addition, continually rising interest rates, stricter bank financing rules, housing affordability and demographic changes were factors that strongly influenced the decision. However, premium markets are performing well and showing continued growth. "

Porto closed the first half of the year with a 19% drop compared to the same period in 2022.

Joaoão Leite de Castro, commercial director of Savills Porto, says:

"The figures recorded in the first half of the year were already expected.

In the first half of the year, average prices for new properties in Great Lisbon, Great Porto and the Algarve amounted to 5847 euro/m2, 4127 euro/m2 and 4879 euro/m2 respectively.