The Portuguese Real Estate Market in 2024

At Vero Eos Et Accusamus Et Iusto Odio Dignissimos Ducimus Qui Blanditiis Praesentium Volumnptatum Deleniti.

Published on 09 February, 2023 • Last updated on 16 February, 2024

By Portugal Homes

The Portuguese Real Estate Market in 2024

There is no shortage of reasons behind Portugal’s perpetual appeal. The country has excellent weather, with over 300 days of sunshine and blue skies, an extremely high quality of life, and claims the title of the 7th safest country in the world. These positive aspects are just a few among the countless behind the country being so highly sought-after, and why the Portuguese Real Estate market will continue to prevail in 2024 and beyond, making this year the perfect one to move forward with your investment in Portugal.

Avenida da Liberdade in Lisbon - place with the best properties in the capital.

Lisbon & Portugal are among the Best Markets for Property Investment 

Confidence in the Portuguese property market is also highlighted in the 2024 edition of the Emerging Trends in Real Estate in Europe, a yearly report produced by PwC and the Urban Land Institute, which ranks the best European capitals for Real Estate investments.

Lisbon has been undoubtedly on an astonishing skyward trajectory, positioning itself as one of the most attractive European cities for Real Estate investments in 2024. In just 2 years, the Portuguese capital climbed a staggering 8 positions, going from 16th place in 2022 to ranking 8th in 2024. Considering the report’s reliability, it can be presumed house prices will not drop in Portugal for the next few years. If anything, they are set to keep on increasing.

Lisbon shines brightly in the spotlight, being the country’s main economic hub, and an extremely popular choice among both Portuguese citizens and expats. With a laid-back lifestyle and an entrepreneurial spirit, Lisbon has unarguably become the best place for foreigners to live in Europe. The Lisbon property market outlook for 2023 revealed an incredible rise in property value, although this assessment could yet prove to be an understatement. Market regulations will eventually happen, and it has already started to show, especially when we analyse the shortage of real estate products for sale. 

Landscape of Lisbon buildings; properties that foreigners invest in.

Rental Prices in Portugal Attract Investors due to Continuous Growth

Traditionally, Portugal has very reasonable rental prices, especially when looking outside major cities. However, Lisbon showed a considerable increase in house rental prices in 2023, paving the way for a more appealing and attractive real estate market in 2024.  

According to official numbers provided by Statistics Portugal (INE – National Institute of Statistics) in December 2023, the most up-to-date information reveals the rental prices in the Portuguese capital registered a year-on-year growth of +12,5% in comparison to the previous quarter. A starking difference from the national average, which had a year-on-year growth of +10,5%.

Using a total of 23,717 registered leases as the basis, the newest report contrasts the national average cost per square metre of 7,25€/m2 against the Greater Lisbon Metropolitan Area, with an average of 11,40€/m2.  

Lisbon was followed suit by the Madeira Autonomous Region, with an average of 8,79€/m2, and the Greater Porto Metropolitan Area, with an average of 8,22€/m2. Surprisingly, the Algarve region, Portugal’s prime tourism destination, fell below the national average, only registering a 7,4% growth rate, despite revealing cost per square meter comparable to the Porto area, with an average of 8,03€/m2.  

Understanding the rental market in Portugal is a key factor in the Real Estate industry, considering an investor may obtain a larger return when purchasing a property in the right location where there is a higher demand. 

Parque das Nações in Lisbon and its commercial developments.

Read more: 

Lisbon Property Prices On The Rise Despite The Golden Visa End In Real Estate
Lisbon is among the best for real estate investments in Europe
Investing in Portugal Real Estate

The 2024 Portugal Golden Visa and the D2 Visa Alternative 

In 2023, the Portuguese government shocked the world when it discontinued Real Estate investments as an eligible option for the Golden Visa. This option alone had contributed massively to the country’s economy, being responsible for almost 90% of the 7,3 billion euros the Golden Visa brought to the economy between 2012 and September 2023.  

The Portugal Golden Visa remains fully active in 2024, though only available through other less desirable and riskier options, including contributions and donations, and subscriptions to investment funds, among others. An alternative, the D2 Visa, rises in its place, taking the spotlight as the best Residency by Investment, and Portugal Homes has created investor-focused D2 Visa solutions.

Currently, Portugal Homes’ best-selling solution is focused on Mátria, an upcoming development co-working building located in the Lisbon city centre, with investment options starting at 280K, which is the same minimum amount the Real Estate option for the Portugal Golden Visa required back when it had been available.  

When complete, Mátria will feature state-of-the-art equipment and luxury amenities to service co-working needs, such as private offices, boardrooms, phone booths, virtual offices, private members-only gym, and access to changing rooms, and coffee shop, a lounge and a private terrace.

Invest in the Portugal D2 Visa with Mátria, and set yourself on the fastest path to EU Citizenship, taking only 5 years until the Portuguese passport is in your hands. Get in touch with us today and start the process now, get your Residency in Portugal in 3 months, and unlock a myriad of benefits!


2022: Portugal Homes, End of Year Report

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