Portuguese Property Prices No Longer At Bargain Basement Level

As the European housing market hots up, Portuguese real estate prices are showing the second strongest growth of all EU member states.

Figures originating at Eurostat, the EU’s statistics guru, are showing the bloc’s real estate sector is still maintaining steady house price growth of around 4.5 per cent. Ireland recorded the largest growth percentage at 11.8, followed by Portugal at 10.5 and Slovenia at 10 per cent. Especially popular with UK retirees, a home in Portugal is now less affordable than in past years, with the country’s property prices expected to keep rising whilst demand remains strong and supply stays short.

The worst supply shortage was seen in the ever-popular Algarve region as well as in Porto and Lisbon, with prices in the capital’s historic central districts increasing over the past year by 21.1 per cent. As a result and for the same reason of lack of supply, rental charges are also soaring. For decades, Portugal, and the Algarve in particular, was the retirement destination of choice for UK citizens coming up for retirement, due to its sublime weather, tranquil lifestyle, low cost of living and affordable housing.

It’s uncertain whether Portugal’s Golden Visa expat investment programme aimed at the seriously wealthy has had any effect on house prices or the shortage of suitable properties for expat retirees, as high-end property prices are also seeing an increase. In general, Portugal’s property market was the last in Europe to recover from the 2006 financial crisis, mostly due to the country’s sluggish economic growth preventing it from taking part in the subsequent European property boom. However, demand is now surging and construction companies are racing to keep up.