CBRE: Portugal's home prices doubled in a decade

The average price of a home in Portugal has "doubled in ten years," according to data from consultancy CBRE, which attributes this growth primarily to a shortage of supply.

In a statement, CBRE noted that "while a property in 2013 was valued at an average of €102,000, by 2023, the same property is worth €212,000, representing a 106% price increase."

"In 2022, approximately 90% of active real estate loans had variable interest rates, making homeowners especially vulnerable to rising rates," said Francisco Horta e Costa, CBRE’s executive chairman. Consequently, the value of residential property transactions dropped from a record high of €31 billion in 2022 to €28 billion in 2023.

"Despite this decline in transaction volume, house prices have continued their upward trend, driven by a persistent shortage of supply, which has been ongoing since 2013 when there was a significant slowdown in new property construction," he explained, adding that this supply shortage is sustaining price increases even amid economic uncertainty.

CBRE also highlighted a positive trend in 2024, with 37,000 transactions recorded in the first half of the year, surpassing the 33,000 transactions in the same period of 2023. "The total value of these transactions reached €14.6 billion, compared to €13.7 billion last year," CBRE reported.

This reflects "a highly dynamic market where, despite rising interest rates, especially Euribor, property prices continue to climb."

According to CBRE, the average value of a house in Portugal increased from €102,000 in 2013 to €212,000 in 2023.

Meanwhile, the commercial property sector in Portugal is expected to attract around €2.3 billion in investment this year. CBRE stated that "this segment is showing signs of recovery, particularly in the retail and hotel sectors, with the third quarter of 2024 demonstrating increased activity."

"During this quarter, €342 million was invested, bringing the total by September 30 to €1.014 billion, in line with last year's figures." The outlook for the remainder of the year is "especially promising," with a strong start to the final quarter, with turnover already surpassing the previous quarter in the first 10 days of October.

CBRE noted that this performance is largely due to "two major retail transactions, each in the hundreds of millions of euros." As a result, the commercial property sector is expected to close 2024 with investments between €2.1 billion and €2.3 billion, marking significant growth compared to 2023, when the figure was around €1.6 billion.

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