Value of Houses Transacted Reaches Historic Highs

Value of Houses Transacted: A New Benchmark in Portugal

The value of houses transacted in Portugal reached its highest point on record in 2024, highlighting the dynamism and strength of the national real estate market. During the year, 156,325 dwellings were transacted, representing a 14.5% increase compared to 2023, totalling 33.8 billion euros in sales, a 20.8% growth over the previous year. This sustained growth not only confirms the appetite for real estate investment but also reflects widespread confidence in the housing sector.

Prices and Transaction Volume: Remarkable Evolution

The increase in the value of houses transacted is not only due to a higher number of completed operations but also to a significant rise in prices per square metre. In 2024, the median sale price of family homes in Portugal rose to 1,777 euros per square metre, registering a year-on-year increase of 10.3%. This appreciation occurred across the country, although the regions of Greater Lisbon, Algarve, Madeira, Setúbal Peninsula, and the Porto Metropolitan Area remained above the national average.

Sales reflect stronger demand, with the segment of used houses standing out, representing about 80% of the total, recording an annual appreciation of 9.7%. New houses also followed this trend, with prices increasing by 7.5%.

The Impact of Bank Valuations and Mortgage Credit

The growth in the number of transactions was accompanied by a record increase in bank valuations, essential for mortgage credit operations. In 2024, approximately 140,000 valuations were conducted, a 32.1% increase compared to 2023, reflecting the growing interest of families and investors in obtaining financing to buy homes.

The reduction in mortgage interest rates combined with specific supports, such as measures for young people, encouraged more Portuguese to proceed with home purchases, further boosting the rise in the value of houses transacted.

Licensing, Construction and Supply: Responding to Demand

The increase in the value of houses transacted also stimulated activity in the construction sector. In 2024, 25,470 buildings were licensed, a 7.2% increase compared to 2023, reversing the decline recorded the previous year. Licensed dwellings reached 41,851 units, with about 83% destined for family housing, representing a 5.4% rise. The sector also responded with a 6.8% increase in completed works, totalling nearly 28,500 new dwellings across the country.

Despite this increase in supply, demand remained higher, a factor that contributed to the accelerated appreciation of the market.

Regional Disparities in the Value of Houses Transacted

Although the growth in the value of houses transacted was widespread, marked differences persist between regions. Lisbon stands out with average prices substantially above the national average, followed by regions such as Algarve, Madeira and some areas of Porto and Setúbal. In the Centre and Alentejo, although prices per square metre are more affordable, there was also a significant increase due to greater interest in housing outside major urban centres and increased demand from residents and international investors.

The total transaction value by region reflects these inequalities, with the Lisbon region leading decisively, maintaining values well above the rest of the country.

Outlook for the National Real Estate Market

The historic high in the value of houses transacted in 2024 demonstrates the vitality of the real estate market but also raises challenges, especially regarding access to housing. With prices rising and demand remaining strong, the coming years may bring new pressures for both those wanting to buy and those seeking to rent. Continued growth in supply will be crucial for the future balance of the market.

The Portuguese real estate sector is expected to remain dynamic, though more sensitive to changes in financing policies, family purchasing power, and effective supply in each municipality.

Conclusion: A Market in a New Cycle

2024 became a milestone in the national housing market, with the value of houses transacted reaching historic highs and consolidating Portugal as a preferred destination for investment and residence. Monitoring these indicators will be essential for those intending to buy, sell, or invest, guiding more informed decisions aligned with the growing and challenging reality of the market.

Source: SUPERCASA