OCM Portugal Market Report
Since 2017 to date the average house sales price in Portugal increased by over 70%. In 2022 alone, house prices grew by over 7%. However, if we look to just the Algarve, annual house prices increased by almost 17%, with the average price per sq.m costing €3,064. Property prices in Portugal are now higher than Spain and Italy. Last year (2022) global wealth grew by 9.8%, with 5.2m new millionaires. These High-Net-Worth individuals are choosing to buy in Portugal, for investment and lifestyle choices and this in turn is driving the market in Portugal. They are not directly impacted by increasing interest rates as many choose to purchase their property without a mortgage. We have experienced an increase in enquiries of almost 40% from these High Net Worth Buyers.
Portugal has become increasingly popular and when you look at everything Portugal has to offer it is easy to see why. Portugal has also been the recipient of numerous global awards, including ´Best Country for Expats to Live in´, ´Safest Country to Live in´, ´Best Country to Retire to´, ´Best Golf Course Destination´, ´Best Beaches´. All of the above has made Portugal an increasingly attractive, trendy country with buyers from across the world.
Portugal was once considered a destination for retired golfers who were mainly from the UK and Ireland with a small minority from Germany. Today paints a very different picture, with the average age of buyers now in their mid-40s and from a range of countries across Europe and the US. The Irish and British account for over 69% of buyers, 25% are relocating from areas of mainland Europe and approx. 6% from the USA and India. Young families and digital nomads account for a large proportion of new home buyers. These buyers are not purchasing for investment or for holiday homes but rather for permanent homes to relocate to. These are cash buyers are seeking beautiful properties in fantastic locations which of course comes with a high price tag. There has been over 12.5% increase in the cost of building materials, so it is no surprise that most of our clients are seeking turn-key properties or properties that require some refurbishment. We have witnessed a notable decrease in buyers seeking plots of land to build on. This is also due to the lengthy planning process, building regulations, and scarcity of land. All of these factors continue to contribute to an increase in property prices. Across Portugal, demand continues to outweigh supply and so we do not predict a downturn in the Portuguese market anytime soon.
See our full list of properties for sale in Portugal here
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