Many of us looking to buy a property in the Algarve last year might have let out a welcome sigh of relief with the news that there were finally more properties on the market. With a general decline in house sales, those poised to invest saw the perfect opportunity in 2023.

But that sigh of relief may have been short-lived. This year, lower interest rates on housing loans and increased purchasing power due to slowing inflation have since contributed to the recovery of the housing market.

What does that mean for Portugal's property market right now? Recent analysis from idealista found that house prices in Portugal have not only risen in 2024 but have also surpassed the global average of 3.6%.

Based on data from a recent Knight Frank report, the analysis showed that between the first quarter of 2024 and the same period in 2023, property prices in Portugal rose by 6.5%.

It was the 14th-highest increase out of the 56 markets analysed. Of those, 45 saw house prices go up, which the report attributes to a healthy housing demand and the slow delivery of new homes.

The sharpest increases were in Turkey (+52%), Bulgaria (+16%) and Poland (+13%), while the largest drop in Europe was observed in Luxembourg (-14.4%), followed by Finland (-7%) and Jersey (-6.3%).

Unlike Portugal, the report also suggests that slower economic growth and high inflation in countries like France and Germany have negatively impacted their housing markets.

With prices still consistent and 1 in 3 homes in the Algarve sold every week, finding your ideal property might not be as easy as you'd hoped.

With decades of experience in the Portuguese real estate market, the Algarve Home Sales team has its ear to the ground to ensure the perfect match between home and buyer. Get in touch now.