It was a busy year for estate agents and policymakers alike. New incentives, tax breaks, and exemptions for young buyers, strong investment from Portugal nationals, a continued shortage of properties and a still-booming luxury market.

So what most defined the property market in 2024? In a nutshell: the Algarve and Portugal are still the place to be, and prices reflect that. Here are some of the numbers:

In the summer of 2024, home sales increased by 19.4% compared to the same period last year. That’s a total of 40,909 properties sold, according to the latest report from the National Statistics Institute (INE).

The increased activity also drove home prices to their highest annual rise in two years, with the housing price index climbing 9.8% year-over-year. Second-hand homes played a key role in this growth, with prices jumping by 10.5%, surpassing the 8.1% increase observed for new builds.

Nearly 79% of all transactions involved existing homes, which also accounted for €6.5 billion of the €9.1 billion total transaction value – a 30.7% increase from the previous year.

Domestic buyers were the primary drivers of this surge, responsible for 93.5% of purchases. Approximately 38,254 homes were acquired by residents of Portugal, reflecting a 21.4% increase compared to the same period in 2023.

In contrast, sales to overseas buyers declined slightly, with non-EU buyers purchasing 8.1% fewer homes. This shift may be linked to the end of programmes such as the Golden Visa and the Non-Habitual Residency tax regime.

Although international buyers contributed less, the market’s overall growth showcases the strong demand among Portuguese residents and the effectiveness of recent policy changes in stimulating home purchases.

With prices expected to keep going up for at least the next two years, a local expert can be invaluable. Whether taking advantage of tax benefits or assessing property options, get in touch with a knowledgeable estate agents like Algarve Home Sales.