The rise in housing prices in Portugal continues, with ongoing supply issues needing resolution, noted real estate expert Hugo Silva on Wednesday, emphasizing the challenges in the rental market.
“The demand for rentals is absolutely crazy. It’s one house for 20 clients,” stated Hugo Silva in comments to TVI.
The expert highlighted that while government measures have encouraged young people to purchase homes, supply-side problems remain to be addressed.
“The measures were very important for encouraging young people to buy homes. We’ve seen individuals who couldn’t buy homes over the last four or five years returning to the market. The issue is that we still face many supply-side problems,” explained the expert.
More than 42,000 young people have already used public guarantees for housing loans, the Prime Minister announced today, citing data collected until May 31st.
Lusa | 13:27 – 17/06/2025
Hugo Silva argued that, “as long as this problem remains unsolved, this scenario that’s reported on the news every week” will persist.
“Unless effective measures are taken on the supply side to increase the number of available houses in the market, average prices will keep rising and the difficulty of accessing buying or renting houses will continue,” explained the expert.
In the opinion of the expert, this problem cannot be resolved “in the short term” because constructing a house takes “between a year and a year and a half”.
As for solutions, Hugo Silva suggests pursuing a “more professional market on the rental side, with incentives,” and involving banks on the supply side of the equation.
Housing Prices in Portugal Continue to Rise
Housing prices in Portugal increased by 8% in June compared to the same month in 2024, according to the idealista price index released on Tuesday. Last month, the median cost of buying a house was 2,898 euros per square meter (euros/m²).
Purchasing a home in Portugal became 8% more expensive in the past year, with the price per square meter at 2,898 euros. In the Greater Lisbon area, it exceeds 4,000 euros/m².
Notícias ao Minuto | 13:48 – 01/07/2025
In terms of quarterly variation, prices increased by 4.4%, according to information sent in a statement to Notícias ao Minuto.
“In June, housing prices rose in 15 capitals, with Setúbal (20%), Santarém (15.3%), Évora (13.9%), and Ponta Delgada (13.6%) leading the list. They are followed by Faro (10.3%), Viana do Castelo (10.1%), Coimbra (9.5%), Funchal (7.6%), Braga (6.5%), Porto (6%), Portalegre (4.8%), Vila Real (4%), Leiria (4%), Lisbon (2.3%), and Bragança (1.6%),” the statement reads.
In Aveiro, prices remained stable during this period (0.5%).
Conversely, prices dropped in Castelo Branco (-3.1%) and Viseu (-1.9%).
