In 2023, the volume of residential property transactions (in mainland Portugal) reached an estimated number (by Confidencial Imobiliário) of 131,700 dwellings (12% of which were new dwellings and 88% were used dwellings), which represents a drop of 17% compared to 2022.
This volume of transactions reached, in the 1st quarter of 2023, a minimum of the previous two years. This drop had already been noted in the 1st quarter of 2022, although it was not followed up in the 2nd quarter.
Residential property transaction volume in mainland Portugal
Quarterly Variation Rate

But from the 3rd quarter onwards, the pressure on demand, caused by the rise in the inflation rate and interest rates, made a drop in the volume of transactions evident, which lasted until the 1st quarter of 2023.
However, these sharp drops did not occur for the rest of the year, with the volume of transactions stabilizing from the 2nd quarter of 2023 onwards.
This stabilization in the volume of transactions has eased the pressure on the sales prices of residential properties. These maintained the upward trend of recent years in 2023.
Residential Housing Price Index in mainland Portugal
Quarterly Variation Rate

Thus, in 2023, there was an increase in the sales prices of residential properties of around 11.8%. This represents a slowdown in this increase compared to the increase seen in 2022 (18.7%), being the year with the lowest price increase since 2017 (with the exception of the "abnormal" year of 2020, which suffered the impact of the viral pandemic) .
The average house price per m2 - in 2023 - was € 2,257. The average sales price for new housing was €3,465/m2, while the average sales price for used housing was €2,114/m2.
The average sale price per house - in 2023 - was € 237,450. The average sales price for a new home was €401,476, while the average sales price for a used home was €218,243.
And what are the prospects for 2024?
If the trend towards controlling inflationary pressures continues, interest rates should follow (fall) the same. This could cause a slight increase in the volume of transactions and the maintenance of the growing trend (albeit more moderate) in the level of sales prices for residential properties.
Do you need additional clarification?
Don't hesitate to contact me:
Marco Moura Marques
+351 967 035 966
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