September 2023

Portuguese Housing Market Survey


  • Sales market activity indicators all remain negative
  • Near-term expectations are still subdued
  • Rental growth expectations turn flat

Tarrant Parsons

RICS Senior Economist

“Recent data suggest growth momentum is fading somewhat across the Portuguese economy, with Q3 GDP projected to rise by 0.2%, while the outlook appears similarly modest for Q4. Although the labour market remains generally tight, information on vacancies and hiring intentions suggest employment growth will cool going forward. Given this backdrop, and with interest rates unlikely to deviate significantly from current levels over the next few months, it appears unlikely that the residential sector will see a meaningful improvement in activity levels over the near-term.”

Ricardo Guimarães

Director at Ci

“For the moment, the residential market is expecting a long period with high interest rates while policymakers attempt to bring down inflation. All market parties know that, before inflation is controlled, monetary policy will remain conservative and potential demand will continue to be subdued. New challenges are being added, especially from the new crisis in Israel, once again, with potential impacts on costs and inflation. As a result, agents’ expectations are still cautious, despite relatively positive signs from the market where, according to SIR data, transactions are now stable, and prices are behaving positively.”


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