2022 was a very positive year for the housing market in Portugal, despite a break in this trend from September due to inflation, war and other factors such as a rise in the credit rate and taxes. One of the primary focuses as real estate agents in the past year has been on the international market, especially the European market, and ensuring it continues to grow.
We noticed a shift this year, with regards to the motivations for purchase, with an increased number of in customers whose primary concerns and reasons for choosing Portugal were quality of life, and safety.
The increased interest in obtaining residence in Portugal from international buyers, is as a result of the desire for a new way of living. There are an increasing number of buyers with a purchase power of 1 Million Euros, sometimes much more than that.
The scarcity of supply in the luxury and higher-segment real estate market in the face of increased demand, from a buyers with specific requirements in terms of quality and space, remains the most important factor for prices in this segment. This also means the price of high quality properties in this sector is unlikely to decrease in the near future, especially when you take into account the high price of luxury property in other parts of the world.
The demand from North and South American markets will continue to grow from 2023. More buyers from Latin America who would have usually chosen Spain to purchase property, may decide to buy in Portugal for tax purchases. The increased demand that will follow may also cause the price of houses in the luxury segment to continue to rise.
Rising prices and the global economic situation has provoked some hesitation in customers, who have put off buying decisions in the hope that prices will fall. Something that our experience tells us will not happen. Demand in all sectors continues to increase, mostly motivated by the style and quality of life that Portugal offers, and will always continue to offer.
Author Paulo Lopes