WHAT DOES THE REAL ESTATE MARKET PREDICT FOR PORTUGAL IN 2024?
In this article, I want to share with you some recent information about the real estate market in Portugal. With a special focus on those who are considering selling their properties, offering my knowledge to help you in your decision making.
We all agree on one thing. The real estate market is slower and properties spend longer on the market before finding a buyer. Impacted by inflation, high construction costs and rising interest rates, 2023 was the beginning of what many consider the price correction that was announced to be coming.
Europe globally has already fallen by around -2%, with some countries seeing the market react more quickly, with special emphasis on Luxembourg which saw the price of its houses fall -13.6%, Germany -10.2%, Finland – 7% and France around -2%, according to Eurostat data.
Real estate market predictions for 2024
It is difficult to predict how the Portuguese market will react. Demand is more selective, the new laws have cooled foreign investment in Portugal, the government is seeking to place more properties on the market by speeding up licensing processes and inflation is still there, despite being expected to drop to 2% in the 2nd half of 2024, despite continuing to have a special impact on construction prices.
All of this combined with the political instability we are currently experiencing could lead to the conclusion that house prices in Portugal will fall and follow the European trend, devaluing around -2% throughout 2024.
On the other hand, those buyers who were waiting for the opportunity to invest in a new home finally see the stability of interest rates and new property entries every day on the portals, giving them the desired opportunity. This means that there are still people buying, expressing that more than ever, the promotion strategy and identification of the right audience for your home is fundamental when placing it on the market.
Factors to take into account this year that will define the correction, stabilization or evolution of house prices:
- Political panorama;
- Job;
- Interest rates;
- Stock of properties on the market.
I also share some raw data about our area in 2023, taken from the Confidencial Imobiliário platform:
Caldas da Rainha Municipality
- Average promotion price, €2000/m2
- Average sales price-> 1750€/m2
- Number of transactions->815
- Average sales time-> 5 months
Peniche Municipality
- Average promotion price, €2300/m2
- Average sales price-> 1800€/m2
- Number of transactions->470
- Average sales time-> 5 months
Bombarral Municipality
- Average promotion price, €1800/m2
- Average sales price-> 1250€/m2
- Number of transactions-> 217
- Average sales time-> 7 months
Lourinhã Municipality
- Average promotion price, €2250/m2
- Average sales price-> 1500€/m2
- Number of transactions->420
- Average sales time-> 6 months
The real estate market is constantly evolving, and understanding changes is crucial when making decisions about buying and selling properties. If you’re considering this possibility, I’m here to provide up-to-date information, answer questions, and offer personalized guidance based on your situation.
I am available to discuss current market value, effective marketing strategies, and any other questions that may arise during the sales process. My priority is to ensure you have a smooth and successful experience.
If you are interested in scheduling a consultation or just want to chat about the real estate market, please don’t hesitate to contact me directly.
And here it is, another article that I think will be of special interest to you. Don’t forget, my success is reflected in your satisfaction. See you soon…