The Evolution of the Portuguese Property Market

The Portuguese property sector and its market have evolved significantly over the last 50 years. In the 1960s, Portugal began to industrialise and the population began to grow, leading to an increase in demand for housing. In line with this growth, the state invested in building new properties, which helped to increase supply. The result was a significant increase in housing prices during this period.

In the 1970s, due to political and economic instability, there was a strong negative impact on the property market, with housing prices falling and demand decreasing. However, the market began to recover in the 1980s, due to economic growth and Portugal´s entry into the European Community.

During the 1990s, Portugal was one of the most sought-after countries by tourists and international investors, resulting in rapid growth and leading to a significant increase in house prices. This trend continued into the 2000s, with the country experiencing strong economic growth.

The subprime crisis of 2008 had a negative impact on the property market. Housing prices plummeted, as did demand. However, the market began to recover in the 2010s, with economic growth and Portugal´s entry into the eurozone.

The property market is currently in a growth phase, with house prices rising and demand outstripping supply. This trend should continue over the next few years, with the country experiencing strong economic growth.

I consider these to be the main factors that have driven the evolution of the market in Portugal over the last 50 years:

Economic growth;

The increase in population;

Portugal´s entry into the EEC;

The growth of tourism;

The arrival of international investors;

The subprime crisis of 2008;

Portugal´s entry into the Eurozone.

The property market is dynamic and constantly changing. Housing prices are rising and demand is growing, leading the property sector to adapt to this new reality. This trend should continue over the next few years.

All these developments have led to an increase in the volume of property sales of around 500%, while prices have risen by around 300%. This growth was driven by a number of factors, which I mentioned earlier.

In 1982, around 100,000 properties were sold in Portugal. This figure rose to around 500,000 in 2022, with the growth in the volume of property sales being most pronounced in large cities such as Lisbon and Porto.

In line with the increase in sales volume, prices have also risen significantly over the last 50 years. In 1982, the average price of a property in Portugal was around 100,000 euros, and this figure has risen to around 300,000 euros by 2022.

The growth of the property market in Portugal has been accompanied by a number of challenges, such as the lack of affordable housing, the lack of state investment in affordable housing, increased property speculation and gentrification. The Portuguese government has taken measures to mitigate these challenges, such as building new properties, regulating the property market and promoting social housing. However, these measures are insufficient and belated, given the difficulties experienced by young people and families with low purchasing power.

Despite the challenges, the property market in Portugal continues to be one of the most dynamic in Europe. The growth of the property market is driven by a number of factors, such as population growth, rising incomes, increased tourism and foreign investment.

I believe this trend is set to last for the next few years.



Luis Rodrigues

Sales & Office Manager