The number of houses sold in Portugal registered a year-on-year increase of 13.1% and a 12% increase in prices in 2024, according to data from the Association of Real Estate Professionals and Companies of Portugal.

In a portrait of the real estate sector in 2024, the association led by Paulo Caiado says that “it is not true” that there is a generalised housing crisis, given the appreciation of the real estate market that has been recorded, the fact that 73% of households families in Portugal have property and 65% have paid off their house.

Furthermore, data revealed in a meeting with journalists indicate that many of the solutions that have been suggested or adopted have had little impact on reducing house prices, which means that they continue to be unaffordable for most people.

In other words, making houses 10% cheaper does not make them affordable for anyone because, according to APEMIP data, “prices have moved far away from family income”.

According to the information provided, foreign buyers represented around 12% of sales volume in 2024, registering an average annual growth rate of 8% between 2019 and 2024, which makes them play a “crucial role in the market”.

The association also highlights the changes observed in the demographic and socioeconomic structure of the population over the last few decades, noting that, between 1981 and 2021, Portugal's population increased by 5% to 10.3 million. On the other hand, in this period of time, the average family size fell from 3.3 to 2.5 members.

The foreign population between 2011 and 2021 increased by 37%, a situation that, according to APEMIP, contributed “to the diversification of the housing market and residential demand” in Portugal.

The imbalance between supply and demand is one of the factors that has put pressure on prices. Between 2011 and 2021 there was a residual growth in the housing stock equivalent to 11,000 units per year.

In parallel, sales of residential apartments have registered “consistent” growth since 2015, with the positive trajectory of demand volume being driven by the domestic market and the attractiveness of the international market.

“Sales values ​​continue to rise due to the imbalance between supply and demand”, highlights APEMIP, adding that the average price per square meter in Lisbon and Porto is close to €5,000 and €3,300, respectively — with prime values have already reached 10,00 and 7,500 euros per square metre.