The shortage of affordable housing has worsened, driven by wealthy foreigners attracted to Portugal's property investment residency rights and tax incentives.

Recent data on housing prices and rents was released by the INE on December 23, 2024.

Rents also saw a significant increase, rising nearly 11% during the same period.

All regions showed growth in both the number and value of transactions, with Greater Lisbon, the Setúbal Peninsula, and the North exceeding the national average.

For the first time in history, average prices for new houses in Portugal have surpassed 300,000 euros.

In the third quarter of 2024, housing prices in Portugal surged by 9.8% compared to the same period last year, according to the National Institute of Statistics (INE).

Existing homes saw a notable price increase of 10.5%, while new homes experienced an 8.1% rise.

Approximately 41,000 homes were sold during this quarter, reflecting a significant 19.4% increase in sales compared to the previous year.

This continuous rise in real estate prices complicates the situation for potential homebuyers, particularly young individuals.

Purchasing a home is increasingly perceived as an impossible task for young people, even with state support.

The total value of real estate transactions reached approximately 9.1 billion euros, marking a 28% increase from the previous year.

In contrast, the Algarve region recorded the lowest growth, with sales up only 1.98% and total transaction value rising by 0.48%.