Young People Increase Their Share in Mortgage Credit in 2024

The share of young people in mortgage credit increased again in 2024, reflecting greater participation of this age group in the real estate market. According to the latest data, 43% of those who took out financing for buying a home were between 18 and 35 years old, a two percentage point increase compared to the previous year.

This rise comes in a context where the government has implemented support measures aimed at facilitating young people´s access to home-ownership. Among these initiatives is the exemption from the Municipal Tax on the Transfer of Real Estate (IMT) and Stamp Duty for the first acquisition of a permanent home. In addition, a public guarantee line was created for young people up to 35 years old, which came into effect in 2024, allowing greater access to mortgage credit without the need for large down payments.

The total amount contracted also saw significant growth, with 44.5% of loans granted to people between 18 and 45 years old. On the other hand, age groups between 36 and 55 saw their representation in the mortgage market decrease. This phenomenon may be linked to the financial stabilization of older individuals, who already own homes or have alternative investment options.

Another relevant factor is the increase in the presence of foreigners in Portugal´s mortgage market. In 2024, the share of foreign borrowers rose to 14%, with half of them being Brazilian citizens. This trend can be explained by the attractiveness of the Portuguese real estate market and the competitive conditions offered by banks.

Geographically, most mortgage contracts were signed in Greater Lisbon and the Porto Metropolitan Area, with 22% and 18% of operations, respectively. These figures reflect the population concentration and strong property demand in these regions, where housing prices continue to pressure family budgets.

The total number of contracts signed in 2024 reached 90,000, involving around 138,000 people. This number represents a 32% increase compared to 2023, showing a growing dynamism in the real estate sector. However, half of the contracts involved amounts equal to or less than 130,000 euros, highlighting the difficulty young people face in accessing higher-value homes.

An analysis of borrower profiles shows that 80% of young people who took out a mortgage work for others, and 53% have higher education. This data underscores the importance of targeted support policies for this population segment, as the rise in interest rates and the increase in housing prices present significant challenges for first-time buyers.

At the same time, banks have been adjusting their mortgage lending policies, offering more attractive conditions for young people, including longer repayment terms and more competitive rates. These measures aim to mitigate the impact of financial restrictions and provide better conditions for purchasing a first home.

In addition to mortgages for primary residences, the Bank of Portugal also monitors "other mortgage credit," aimed at purchasing second homes or properties for rental. In this segment, foreign borrowers were responsible for 45% of the total value of loans granted, reinforcing the importance of international investors in the Portuguese market.

In total, 2.2 million new credit contracts were signed in 2024, covering various types such as personal and car loans, with a global value of 29 billion euros. In the personal loan segment, 593,000 people took out financing, with half of the contracts involving amounts up to 3,500 euros.

The data shows that mortgage credit remains one of the main instruments for achieving the dream of home-ownership, especially among young people. With enhanced support measures and a dynamic market, it is expected that the trend of increasing young people´s participation in this sector will continue in the coming years.

Source: SUPERCASA