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A sense of measured optimism pervades Portugal’s real estate sector as we enter 2025. According to the latest findings from Idealista, property experts anticipate a rise in completed residential transactions, with the rental market holding steady. Projections indicate that property values should settle within the early months of 2025.
The most recent Sensitivity Index of the Real Estate Sector (ISSI) data reveals confidence is stronger in property purchases than in rental ventures, with the purchasing index reaching 74.7 points out of 100, compared to rentals at 57.3 points.
A notable 71.1% of agents express the belief they will finalise a higher volume of sales in early 2025, stimulated by decreases in mortgage interest and fresh buyer benefits, such as tax exemptions and government-backed loans. In contrast, only 6.1% foresee any reduction in the number of houses changing hands.
Concerning prices, despite previous forecasts, over half of survey participants think property values will stay as they are during the first quarter. Close to 40% expect mild increases, and only 5% see prices going down.
The rental scene reveals a parallel trend, where more than half of the agents predict rental costs will hold firm. Conversely, around a third anticipate rises, while near 11% foresee a dip thanks to a growing housing portfolio.
Moreover, agents are moderately positive about new lettings becoming available and leases being signed. Some 28% of agents signal they expect more instructions, though some 21% foresee things slowing down.
Might this be the ideal moment to invest? Within a region as vibrant as the Algarve, a local real estate professional can provide vital insights and tailored assistance. If you are thinking of selling or seeking to secure your dream property, Algarve Home Sales can guide you in making well-informed decisions in a market that looks set to balance out through 2025. Reach out today!
Image: Zakharchuk | Shutterstock
