Property prices continue to rise

House prices in Portugal still continue to rise as supply remains scarce for the existing demand.

In November, houses for sale were 1.9% more expensive compared to the previous month, costing 2,460 euros/m2 on average throughout the country and 5,145 euros/m2 in Lisbon. 

The Portuguese capital may not be cheap anymore but it is still affordable if you compare it to New York (13,382 euros/m2), Paris (11,340 euros/m2), or London (8,936 euros/m2). A very imperfect comparison of course.

The question is, will Portugal’s property prices come down in the near future?

At some point we do expect that the high inflation and rising interest rates on housing loans will start having an impact on the inventory, as a certain category of home owners struggle to make their mortgage payments and are forced to sell. 

We may see a new influx of low to mid-range properties come into the market in 2023. If that is the kind of property that you are looking for, for example as a rental investment, it may be worth waiting a little bit.

But supply (low) and demand (high) for the high-end to luxury segments are likely to remain undisturbed by the rising costs, so for those types of properties, now is as good a time as any to start looking.