Why are house prices in Portugal rising faster than in other EU countries?
House prices in Portugal have skyrocketed by 13.2% this year, significantly outpacing the rest of the EU, which increased by an average of 9.9%. This rapid increase is driven by a blend of strong foreign investment, increased demand for quality housing, and limited supply. For potential buyers, understanding this trend is vital when considering where to purchase property in Portugal.
Key factors influencing the price rise include favourable tax incentives for foreign buyers and an attractive lifestyle that Portugal offers, including a pleasant climate and rich cultural experiences. Major urban centres are experiencing heightened interest, with buyers often competing for desirable properties in these sought-after locations.
Additionally, developments in infrastructure and services enhance the appeal of buying in Portugal. Whether for permanent residency or investment purposes, the country's housing market continues to attract attention due to its unique opportunities. Investors are especially keen on houses that offer rental potential as tourism remains a significant part of the economy.
Despite the fast-paced increase in prices, many experts believe that Portugal still offers relative affordability compared to other Western European markets. This makes it an ideal time for serious buyers to explore the property market, whether it’s for a family home or an investment asset.
Don’t miss the chance to be a part of this dynamic market; get in touch with us today to find out more about the current opportunities available in Portugal!
Prices rose 13.2% in the second quarter of this year, +3.3% on the aggregate average of all the other EU countries.
According to data from Eurostat published on Friday (today), house prices increased 9.9% in the EU space and 9.3% in the Euro Zone in like-for-like terms.
Compared with the previous quarter, the prices of homes rose 2.3% in both the EU and Euro Zone, but in Portugal they rose 3.1% on the first three months of the year.
But although Portugal is seeing the most significant increase in the speed at which homes are increasing in price compared to the rest of Europe in average terms, three countries suffered greater increases: Estonia (+27.4%), Czech Republic (+23.1%) and Hungary (+22.8%).
