Portugal’s real estate sector concluded 2024 with impressive gains, setting a positive tone for 2025, according to recent data from RICS and Confidencial Imobiliário’s December 2024 report. Property values climbed by 11% year-over-year, while transaction volumes soared by 27%, emphasising the market’s strength.
Confidencial Imobiliário’s Director, Ricardo Guimarães, credits the upswing in demand to decreasing lending rates and eager buyer activity. He observed that both families and investors swiftly took advantage of the evolving landscape, leading to a significant increase in sales.
In the Algarve, a popular destination for international purchasers, Kronos Homes has firsthand experience of the growing appetite for homes. Alda Filipe, the firm’s first female Partner in Portugal, emphasises the rising interest in properties throughout the region. “We’re witnessing global customers eagerly acquiring properties ranging from beachfront apartments to expansive villas,” Filipe states. “The attraction for pre-construction properties is notably robust, which is why we’re investing over 200 million euros in exclusive residences in Vale do Lobo, a distinguished Algarve resort.”
While the Algarve attracts global attention, Portugal’s housing market benefits from substantial local enthusiasm. RICS’ Head of Market Analytics, Tarrant Parsons, highlights Portugal’s robust economic state, fueled by domestic expansion and a thriving tourism sector, projecting the nation to exceed the Eurozone’s performance in 2025. “As broad economic challenges decrease and interest rates are likely to be reduced, Portugal is well-positioned to sustain its positive trajectory,” Parsons notes.
The latest survey also reveals increased buyer interest, with new inquiries rising by 6% in December 2024. Forecasts for sales and prices remain optimistic, with strong expectations for the first quarter of 2025. With demand encompassing diverse property types in the Algarve, market analysts anticipate another successful year for Portuguese real estate.
“The outlook for 2025 is exceptionally promising,” Alda Filipe remarks. “Demand is widespread across all property categories in the Algarve, and we anticipate another robust year for the sector.”
With momentum building, Portugal’s attractiveness to both local and international buyers is poised to stimulate additional growth, promising an exciting year for the housing market.
Explore available properties in Portugal.
