House prices set to continue growth in 2023

House prices will continue to rise and rents will be more expensive in 2023 after last year’s record year for Portugal’s residential real estate market.

The increase in the cost of buying and financing a home is bad news for home hunters, but higher interest rates, inflation and increased demand compared to dwindling supply are all factors that will keep prices growing in the housing market in 2023.
That said, ECO online reports that the year is beginning with some uncertainty with the expectation of a tapering off in the number of house sales, while with the increase in mortgage interest rates, there are analysts who believe it will be easier to pay a rent than to pay a monthly mortgage.
Real estate consultants at JLL believe that 2022 will post over €34 thousand million in transactions, up 14% on 2021, with 31 thousand million from the residential market — the other €3 thousand million from commercial real estate transactions. JLL believes that the number of transactions for 2022 will have exceeded 168,000.
“2022 was a year that exceeded all expectations with a lot of demand” said Patrícia Barão, director of JLL Portugal’s Residential department in statements to ECO. As for the luxury residential segment, 2022 was “really good, the best year ever” said Miguel Poisson, CEO of Sotheby’s International Realty Portugal.

Photo: JLL