With pressure on purchasing power and rising interest rates on home loans, families are looking for cheaper homes to buy, in order to borrow less capital from banks. This is reflected in demand: houses for sale that cost up to 150,000 euros are the most sought after in most district capitals in Portugal. But the supply of houses up to that price does not keep up with the high demand in most cities. An example of this is Lisbon, Porto and Faro, where the demand for houses up to 150,000 euros is high, but the supply is less than 2%.

The idealista study shows that houses for sale up to €150,000 are in high demand in 11 of the 20 district capitals analysed. In the remaining cities, demand for more affordable housing is average.

But the offer of homes for sale up to 150,000 euros is not the most expressive in most cities in the country. It can be seen that in 13 cities less than one in every five homes for sale has a price of up to 150,000 euros. It is in Lisbon, Porto, Faro and Funchal where there are fewer cheap houses for sale (2% of the total stock or less), not least because here the high demand helps absorb this supply quickly.

On the other hand, it appears that in the cities of Beja, Bragança, Castelo Branco, Guarda and Portalegre the offer of housing up to 150 thousand euros represents more than half of the total stock of homes for sale in the respective territories.


Average house prices

Most of the houses for sale in 8 of the 20 largest Portuguese cities are concentrated between 150,000 euros and 300,000 euros. This is the case in Braga, Coimbra, Évora, Leiria, Santarém, Viana do Castelo, Vila Real and Viseu. Aveiro, Beja, Castelo Branco, Ponta Delgada, Porto and Setúbal also have a significant offer in this price range (over 35% and under 50% of the total stock per city).

What stands out is that contrary to what happened in the cheapest houses to buy, in this price range (between 150,000 euros and 300,000 euros) the housing supply represents at least 15% of the total stock. And 16 of the 20 cities have at least a third of the homes for sale in this price range.

The demand for houses between 150,000 and 300,000 euros is mainly medium, with the exception of Faro and Lisbon, where it is high. But in these cities, the supply of houses at these prices is also around 20% of the total, which is relatively low to respond to current demand needs, show the same data.

It is necessary to look at the higher level of house prices (between 300 thousand and 450 thousand) to find the most expressive housing stock in Faro (46.7%), Funchal (39.5%) and Lisbon (29.5 %), reveals the same data.