Decrease in Portugal's real estate supply records a 4% drop
In a fascinating analysis of 20 Portuguese capitals or autonomous regions, data reveals that the number of homes available for sale shrank significantly in 13 bustling cities.
Leading the plunge, Viseu (-18%) and Beja (-15%) saw the biggest drops in housing supply, followed closely by Ponta Delgada (-11%), Lisbon (-10%), Évora (-10%), Bragança (-9%), Coimbra (-8%), and Castelo Branco (-8%). The list continues with Viana do Castelo (-7%), Leiria (-7%), and Setúbal (-5%), facing similar changes.
On a more optimistic note, Vila Real (-3%) and Portalegre (-1%) registered less than 5% drops in housing stock, according to idealista's data.
Conversely, seven major Portuguese cities witnessed an increase in the availability of homes. Leading the pack are Porto (34%), Faro (16%), Aveiro (15%), and Guarda (12%), where the supply of homes skyrocketed the most. Completing the list are Santarém (8%), Braga (7%), and Funchal (2%) – cities experiencing a notable improvement in housing stock.
Though idealista's data isn't explicitly referenced, it's worth noting potential challenges contributing to diminishing housing stock in major Portuguese cities. These include rising construction costs, affordability challenges, housing shortages, and limited availability. As labor costs increase significantly (6.9% year-on-year as of February 2025) and property prices surge (10.8% year-over-year), it becomes tough for local buyers to afford homes. Moreover, areas like the Algarve face housing shortages, pushing up prices and limiting the supply of affordable housing. Lastly, a thriving rental market and growing demand from expats strain the existing housing stock even further. Despite all these factors, demand remains high due to foreign investment and tourism.
- The shrinking housing-market trend in 13 Portuguese cities, as highlighted in idealista's data, can be partially attributed to factors such as rising construction costs, affordability challenges, housing shortages, and limited availability.
- Contrary to the downward trend in many cities, Portugal's housing-market in Vila Real (-3%) and Portalegre (-1%) showed less than 5% drops in housing stock, according to idealista's data.
- Intriguingly, seven cities, including Porto (34%), Faro (16%), Aveiro (15%), and Guarda (12%), have witnessed a notable increase in the availability of homes, signaling changes in the Portuguese finance and real-estate sector, as revealed by idealista's analysis.
