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The September 2024 Portuguese Housing Market Survey by RICS and Confidencial Imobiliario highlights stability and growth in the property sector. House price momentum surged, with a net balance rising from +10% in August to +24% in September, and sales expectations increased by 10 percentage points. Idealista reported a 9.4% annual house price rise through October, with Faro leading major cities at 4.1%. Demand for luxury homes and second residences, particularly in the Algarve, remains strong, driven by local and international buyers. Portugal ranked 16th globally for house price growth, reflecting its resilience and attractiveness in the global market.
The recent Portuguese Housing Market Survey from RICS and Confidencial Imobiliario highlights the ongoing stability and positivity within the country's property sector. The report for September 2024 reveals a rise in house prices, alongside strengthened demand and promised sales. Advertisement
During the month, house price growth saw "a significant uptick in momentum," with the net balance climbing from +10% in August to +24% in September. Survey respondents are now expecting price increases over the next three months, with the net balance rising from +9% in August to +17% in September. Sales expectations have also surged, increasing by 10 percentage points. Idealista's figures reinforce this stable trend, indicating a 9.4% rise in house prices in Portugal in the year up to October 2024. Among the country's major cities, Faro, located in the southern Algarve region, led house price growth in October with an increase of 4.1%.
The RICS/CI report further highlights a growth in three-month sales expectations for urban areas such as Lisbon and Porto. Both cities benefit from excellent and affordable connectivity to the UK, as does the Algarve region. Kronos Homes is experiencing the positive impact of strengthened sales and expectations on the ground. In their latest project, the beautifully renovated Flamingos Salgados development in central Algarve, 40% of properties were sold before the official launch.
"Demand for both primary residences and second homes in Portugal is very strong right now," comments Alda Filipe, Real Estate Director at Kronos Homes. "Looking ahead to 2025, we anticipate robust demand for properties in the Algarve, with buyers seeking both apartments and villas. Sales expectations are high for the coming year, while increased appetite for luxury homes and constrained supply of these is likely to push up prices."
Foreign interest in the Algarve is also strong. Engel & Volkers' latest Market Report Portugal points to significant investment from German, British, and Belgian buyers, while Kronos Homes is seeing increasing interest from buyers in North America. At its Salema Beach Village development, 50% of properties have been sold to buyers from the US and Canada.
Second homes in resort locations, such as the Algarve's renowned Vale do Lobo, are also expected to experience strong demand in 2025. "Resort living is attractive to families buying homes for their own use and to those investing in properties with a view to earning an income from them," continues Filipe. "When you add in a coastal location and outstanding on-site facilities, such as those at Vale do Lobo, a wide range of buyers can find everything they need. This bodes well for sales as we move into 2025 and beyond."
On a global scale, Portugal is also performing well. Knight Frank's analysis of house prices across 56 countries in the year to June 2024 showed an overall price increase of 3.3%, with 74% of markets seeing price rises. Portugal ranked 16th in terms of price growth, placing it ahead of the global average.
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