Reasons for slowdown in real estate prices in Portugal

Coronavirus pandemic has had a significant impact on the real estate market in Europe and the world in general. Portugal is also affected. According to experts, the situation this year should stabilize due to increased demand, including demand from international investors.

Why has the rise in prices slowed down?

There are several reasons. The first is a decrease in investment in this sector. For example, in 2020, building permits were issued 2% less compared to the previous year. Another reason is the quarantine period, during which, due to the closure of borders, many sales simply fell through.

What is the situation today?

Speaking about the current situation in the Portuguese real estate market, following can be noted:

• demand for residential and commercial properties in the capital is growing steadily, which stimulates the general pace of market development;
• increasing demand from foreigners wishing to obtain a residence permit - the so-called "golden visa";
• Elite suburban housing is very popular.

If the situation does not change, this will entail an increase in the number of offers and, as a consequence, a gradually increasing increase in prices per square meter.