Real estate professionals in Portugal are cautiously optimistic as 2025 begins. In the latest Idealista survey, agents expect an increase in home sales while rental activity remains largely unchanged. Most anticipate that house prices will stabilise during the first quarter of 2025 across both markets.

The latest Sensitivity Index of the Real Estate Sector (ISSI) survey shows that confidence in the home sales market is higher than in the rental market, with the sales index reaching 74.7 points on a scale of 0 to 100, compared to 57.3 points for rentals.

A strong 71.1% of agents believe they will sell more houses in early 2025, driven by recent drops in mortgage interest rates and new incentives for young buyers, such as IMT exemptions and public guarantees. Conversely, only 6.1% expect a decrease in the number of houses for sale.

Regarding pricing, despite previous expectations, over half of the respondents foresee that property prices will remain unchanged in the first quarter. Nearly 40% predict slight increases, and only 5% expect any declines.

A similar sentiment is present in the rental market, where more than half of the agents forecast stable rental prices. However, approximately one-third anticipate rental increases, while close to 11% predict a drop due to a growing housing stock.

In addition, agents are moderately upbeat about new property listings for rent and the signing of rental contracts. Around 28% of agents expect an increase in rental listings, although about 21% foresee a decrease.

Could this be the opportunity to buy that property? In a region as dynamic as the Algarve, a local estate agent can provide crucial insights and guidance. Whether you plan to sell or buy a home, Algarve Home Sales can help you make informed decisions in a market that appears poised for stabilisation in 2025. We’re here to chat!

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