The housing segment remained dynamic throughout 2021 and home prices continue to rise, but at a slower pace. But that does not mean that buyers, who now have the lowest interest rates ever and favourable conditions for mortgage loans, have kept away. As a result, it is expected that in 2021 alone, 191,000 homes will have been sold, according to consultant JLL.
“In this final stretch of the year (…) it is confirmed that real estate has been fundamental for the recovery of the economy. This is especially visible in housing, where we see a sector with increased vitality and levels of demand that are at historic highs”, says Pedro Lancastre, CEO of JLL Portugal.
Who is buying homes in Portugal?
Portuguese represented 60% of transactions, according to data from JLL. "There has been a growing national demand that sees real estate as a safe bet, says Patrícia Barão, Head of Residential at JLL.
Foreigners represent the other 40% of home buyers. And it was the Brazilians, English, North Americans, French and Spaniards who were most active in the housing market in 2021.
“The changes to the golden visa programme to come into force as of January 2022 have pressured international sales, diversifying the range of active nationalities”, explains Patrícia Barão, who says that despite these changes planned for the beginning of the year, “international demand is very active”. This is because “Portugal is on the foreigners' radar whether to invest, live or work and the pandemic context has placed our country in pole position of European countries”.
Mortgage rates are expected to increase somewhat but stay historically low, home sales will reach a 16-year high, and price and rent growth ..Home prices are still soaring. Pinto notes that indeed, the number of prospective sales has declined from the peak in June.
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