Key facts and numbers for 2023

The numbers are now out: Portuguese real estate prices rose by 14% in 2022, despite the challenges posed by inflation and the war in Ukraine. 

Regarding 2023, rating agencies are pretty noncommittal, with Moody’s predicting that house prices would either remain stable or perhaps fall by a maximum of 3%, which, let’s face it, is nothing. S&P is a little bit more pessimistic, and forecasts a 4.4% fall in prices.

But the demand remains very strong. In fact, 21% of homes are sold within one week of being listed, and 57% are sold within 3 months.

Here’s a striking fact: the number of houses for rent fell 40% in the 4th quarter of 2022 in Portugal and 55% in Lisbon. This scarcity is pushing rental prices up. You are now looking at spending between 1,500-2,000 euros/month for a renovated one bedroom in an attractive part of Lisbon.

As a consequence, students and young professionals are struggling to find a simple room for around 500 euros in the center of the capital. 

This leads us to what we see as the major opportunity for investors looking to maximize returns: large apartments with multiple rooms that can be rented out individually. This type of property currently offers yields of 6-8%, while continuing to appreciate along with the rest of the market. 

If that is of interest to you, let’s talk! We have a property that fits this profile coming into the market in the next 2 months.