Portugal will not have a bubble in the real estate market.

The former chief executive of Novo Banco has spoken out about the sustainability of the real estate market in Portugal, saying there is no "real estate bubble" there. Although house prices in the country continue to rise, this does not mean that there is or will be a real estate bubble in Portugal, as demand for housing continues to exceed supply and employment remains robust, António Ramalho said at the Portuguese Real Estate Summit.

Now "house price growth is slowing due to unfavorable base effects and tighter financial conditions. Demand remains steady, but the number of transactions is decreasing," said António Ramalho. But despite what many say, there is no real estate bubble in Portugal and we will never see one," he emphasized, as reported by Jornal Económico.

He pointed out several reasons supporting his view. First of all, the labor market in Portugal is resilient.

The former Minister of Economy and Digital Transformation, Pedro Siza Vieira, also ruled out the hypothesis that Portugal could have a real estate bubble. "What António Ramalho has demonstrated is that the Portuguese market is actually very mature, where a significant proportion of the Portuguese own the homes they live in, a significant proportion of these almost two million families have almost paid off homes," he said, quoted by the same newspaper.

"Unlike other peripheral destinations, Portugal remains a low-risk market due to its local importance. I cannot say that Portugal is the best real estate market in the world, but it is one of the best," the former Novo Banco executive emphasized at the event.