Madeira's Real Estate Prices 71% Higher Than Buyer Demand

Study Reveals Mismatch Between Supply And Demand

A new study by the real estate portal Imovirtual has uncovered a significant disparity between asking prices and buyer demand in Madeira's real estate market. The research indicates that the average price of homes for sale in the region is 71.73% higher than what buyers are willing to pay.

280,000 Euros Asking Price

While Madeiran buyers are seeking homes around 280,000 euros, the market is offering properties with an average price of 480,000 euros. This discrepancy puts Madeira in a similar situation to Lisbon, where the gap between supply and demand is also 71.93%.

National Outlook

Nationwide, the difference between asking prices and buyer demand is even higher and reached 80% in the second quarter of 2024, according to Imovirtual. This figure suggests a widespread misalignment in the Portuguese real estate market.

Impact on the Market

This discrepancy between supply and demand could have several impacts on Madeira's real estate market, including:

• Difficulty accessing housing: First and foremost, high prices make it difficult for many residents to afford homes.

• Market stagnation: The lack of buyers willing to pay asking prices could lead to stagnation in sales.

• Increased demand for affordable housing: The disparity could drive the search for cheaper alternatives, such as used properties or those in less central locations.

Next Steps

It is crucial for Madeira's real estate market to find a balance between supply and demand to ensure fairer access to housing and a more dynamic market. The continuous analysis of data and the search for solutions that meet the needs of both buyers and sellers are essential to achieving this goal.

Source Dnoticias.pt