House Sales Decrease By 18.7%
The Portuguese housing market experienced a significant slowdown in 2023, with house sales plummeting by 18.7% compared to the previous year, reaching the lowest level since 2017, according to the National Statistics Institute (INE). Despite the decline in sales, house prices continued to rise due to a persistent shortage of affordable housing options.
As Sales Go Down, Housing Prices Continue To Rise
The median price of family accommodation in Portugal reached €1,611 per square meter, marking an 8.6% increase compared to 2022. Lisbon remained the most expensive market, with prices reaching €4,167 per square meter. The Algarve, PenĂnsula de SetĂşbal, and Porto Metropolitan Area also saw median prices exceeding the national average. While the average house price in Madeira has already reached €460,000. The median housing price is located at €1,889 per square meter and thus above the national average.
Unresolved Housing Crisis In Portugal And Europe
The lack of affordable housing options continues to pose a challenge for aspiring homeowners, as the imbalance between supply and demand continues to drive prices upwards. This situation underscores the need for increased investment in affordable housing initiatives to address the growing housing affordability crisis in Portugal. High interest rates and a weak economy are driving the housing market downturn.
Source: The Portugal News
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