Lower interest rates and property transfer tax exemptions for young people helped boost home purchases in Portugal last year—and this trend is expected to continue. However, contrary to what one might think, home sales will not increase exponentially in 2025 because there is a structural factor that is likely to limit these transactions: the lack of housing on the market.
After last year's recovery in home sales, real estate professionals expect residential business to stabilize in 2025. In other words, families will continue to buy homes, but at a slower pace. The same will happen in the rental market.
One of the main factors holding back the housing business will continue to be the lack of affordable housing available on the market. There is another external factor that could affect real estate transactions, especially at the start of 2025: the return of Donald Trump to the US presidency, with his protectionist policy, which could cause the global real estate market to contract.
Homes for sale and rent will continue to become more expensive in Portugal, but prices will rise more slowly than they have until now.
“In 2025, real estate brokerage will be more than ever an essential pillar of trust and transparency in the market,” summarizes the CEO of Century 21 Portugal, who believes that the challenge in this segment lies in promoting a balance between technological innovation and the human component, “the real differentiator” in this activity.
For real estate brokerage to continue to play a leading role in the country, Ricardo Sousa says it is “urgent” to review the current legislation so that it keeps pace with “the evolution of operators, technological tools, and regulatory requirements, ensuring greater protection for consumers and creating conditions for more effective and professional performance by real estate agents.”
Source: https://www.idealista.pt