Moving to Faro? You’ll be lucky to find a house!
Supply of housing for sale in Portugal falls 14% in 1Q of 2026
Portugal’s chronic housing shortage is getting worse not better despite a raft of government-led incentives.
The supply of housing for sale is falling and dropped 14% in the first quarter of this year.
Faro led the housing supply dry up (-38%), followed by Portalegre (-31%) and Funchal (-26%) with the largest drops in stock among district capitals and autonomous regions.
The supply of houses for sale increased only in Santarém (2%) and Vila Real (1%) among the capitals analysed.
At the district and island level, only Vila Real bucked the national trend, with a 5% increase in available supply.
District/Autonomous Region Capitals
The supply of housing for sale decreased in 18 of the 20 district and autonomous region capitals analysed in the last year, with increases recorded only in Santarém (2%) and Vila Real (1%).
Conversely, the largest drops in supply were observed in Faro (-38%), Portalegre (-31%), Funchal (-26%) and Porto (-25%), followed by Évora (-21%), Coimbra (-16%), Aveiro (-15%), Castelo Branco (-15%), Braga (-13%) and Lisbon (-13%).
There were also reductions in housing supply in Leiria (-11%), Setúbal (-10%), Ponta Delgada (-8%), Viseu (-8%), Guarda (-7%), Bragança (-6%), Viana do Castelo (-4%) and Beja (-3%), confirming a general contraction in the supply of houses for sale in most of the markets analysed.
Districts and Islands
Analysing by districts and islands, the supply of housing for sale decreased in 19 of the 20 territories analyzed in the last year, having increased only in Vila Real (5%).
The largest reductions in stock were observed in Faro (-19%) and Portalegre (-19%), followed by Aveiro (-17%), Coimbra (-16%), Leiria (-16%), Porto (-16%), Madeira Island (-16%) and Évora (-15%).
Significant decreases in housing supply were also recorded in Braga (-13%), Lisbon (-12%), Santarém (-12%), Setúbal (-12%) and Bragança (-11%). In other regions, the supply of houses for sale decreased in Guarda (-7%), Beja (-6%), Castelo Branco (-6%), Viana do Castelo (-6%), Viseu (-4%) and on the island of São Miguel (-3%), confirming a general trend of contraction in the housing supply in the national market.
Source: Idealista; Credits: CMF
