Record Surge in Portuguese Home Sales Intensifies Housing Crisis

In the third quarter, Portuguese home sales reached a record 9.05 billion euros, a 28% increase. Factors like a tourism boom, tax breaks, and residency rights for foreigners exacerbated the affordable housing shortage. The Lisbon area saw the highest prices, while protests emerged over rising costs.

Portuguese home sales soared to a record 9.05 billion euros in the third quarter, marking a 28% year-on-year increase. As interest rates declined from historic highs, nearly 41,000 homes were sold, with existing properties seeing greater price hikes than new builds, according to the National Statistics Institute.

In the year's first nine months, the total value of homes sold jumped 13.5% compared to the previous year, reaching 23.7 billion euros, just under 2022's record. Factors including attractive tax breaks for foreign investors and a tourism-driven surge in holiday lets have worsened the nation's affordable housing crisis, sparking local protests.

Lisbon metropolitan area and the affluent northern regions reported the highest housing prices. While 93.5% of property transactions were by Portuguese residents, the remainder involved buyers from other EU nations (3.37%) and non-EU countries (3.13%), reflecting ongoing foreign interest in the market.

(With inputs from agencies.)