In the first quarter of 2025, house prices in Portugal increased by 16.3% year-on-year, and 41,358 homes were sold.
The real estate sector is calling for more homes to be built in order to respond to the housing crisis – or housing access crisis – that the country is experiencing and thus increase supply. And the truth is that demand continues to be high and prices continue to rise, having increased by 16.3% year-on-year in the first quarter of 2025. According to the National Statistics Institute (INE), this is an increase of 4.7 percentage points (p.p.) compared to the previous quarter, representing a new all-time high in the available series. What’s more, 41,358 homes were sold in the first three months of the year, 25% more than in the same period last year.
A scenario that occurs, it should be remembered, in a period marked by the reduction of the reference interest rates by the European Central Bank (ECB), which in turn leads to a reduction in the Euribor rates and consequently in the mortgage payment to be paid to the bank for the housing loan, and by the entry into force of the public guarantee for young people who buy their first home to live in.
A scenario that occurs, it should be remembered, in a period marked by the reduction of the reference interest rates by the European Central Bank (ECB), which in turn leads to a reduction in the Euribor rates and consequently in the mortgage payment to be paid to the bank for the housing loan, and by the entry into force of the public guarantee for young people who buy their first home to live in.
