Portugal does not face property restrictions

There is no looming or imminent real estate bubble in Portugal, stated the former CEO of Novobanco. Speaking at the Portuguese Real Estate Summit in Estoril on Tuesday, the banker and economist said that the real estate market in Portugal is suffering from a lack of supply while demand remains steady.

The increase in prices is not related to the rise in household debt. "Despite many saying that there is a bubble in the real estate market in Portugal, it will not happen. The increase in housing prices is moderate, with unfavorable base effects and tighter financial conditions. Demand remains stable, although the number of transactions is decreasing," said Antonio Ramalho, former CEO of Novobanco.

The economist noted that the rise in housing prices in Portugal was driven by foreign demand, a boom in tourism, and a stagnation in the new construction market.

Antonio Ramalho said that the real estate market in Portugal is a "mature and professional market" that suffers from a lack of supply. "Unlike other peripheral destinations, Portugal continues to be a low-risk market due to its local significance. I wouldn't say that Portugal is the best real estate market in the world, but one of the best," he added.

This opinion is shared by former Minister of Economy and Digital Development Pedro Siza Vieira. "The Portuguese market is very mature, with a significant portion of Portuguese people being homeowners, and a considerable number of nearly two million families have paid off their mortgages," he told the newspaper Jornal Económico. "The demand for real estate remains very significant, while the supply in the market is very limited, so we will not see a market bubble like in Spain in 2008," he said.