Summary and analysis of Portugal's current residential real estate market conditions.
Insight
Portugal Residential Market Dynamics, Q2 2025
The ECB rate reduction is stimulating the residential sales market, driving increases in both transaction volume and pricing. This demand is met with a persistent supply shortage, which continues to exert upward pressure on values.
Portugal’s residential market shows robust growth, with a significant acceleration in development activity over Q2 2025. Lisbon saw a 47.5% YoY increase in new housing development compared to 2024’s, with requests for licensing of about 138 new homes made in Q2 2025 alone.
The market is gaining traction, with 35,000 new housing units submitted for licensing in H1 2025, up 7% YoY, reflecting increasing developer confidence.