Portugal Leads the Way for Property Capital Growth in the EU

Portugal’s property market continues to attract attention, with housing prices registering one of the highest increases in value and capital growth in the European Union in the last 12 months.

According to the latest data from the European Statistics Office (Eurostat), Portugal recorded a 3.7% increase in house prices during the third quarter of 2024 compared to the previous quarter. This marks the second-highest increase among EU countries, following Bulgaria’s 3.9%.

Over the past year, housing prices in Portugal have accelerated by an impressive 9.8%.

This is a significant jump from the 7.8% and 7% year-on-year increases recorded in the previous two quarters.

Since 2010, house prices in Portugal have more than doubled, soaring by a 113%, having started from a very low base compared with many other established areas of Europe such as France, Spain, Germany and the UK.

According to Statista, the residential real estate market in Portugal is also projected to grow by 5.51% between 2025 and 2029, reaching a market volume of US$1.76 trillion by 2029.

Across the Eurozone and the EU as a whole, house prices rose by 2.6% and 3.8% respectively in the third quarter of 2024 compared to the same period in 2023.

These figures also reflect a stronger performance than the 1.4% and 3% increases observed in the second quarter.

Amanda Collison, a market analyst at Property Market-Index, an international platform measuring real estate trends, highlighted Portugal’s unique position in the EU property landscape. “Portugal’s continued and consistent growth in property prices highlights the country’s appeal especially in the luxury and touristic real estate markets.

‘’The combination of a robust tourism sector, favourable tax regimes, and an increasing demand for premium real estate has created some of the most sustainable markets for buyers and investors in Europe, if not the world” she said.

‘’Like a lot of countries, Portugal has needed to build more affordable homes for local people, 20 years ago they had built over a million homes and now the figure is closer to 30,000 homes being built.

‘’According to the last Census, there were approximately 723,000 vacant houses in Portugal, representing 12.1% of the total housing stock. This is where the real opportunity lies for the government to take advantage of in any future housing bill.’’

However, not all EU countries followed this upward trend.

Among the Member States with available data, four recorded annual decreases in property prices: France (-3.5%), Finland (-2.8%), and Luxembourg (-1.7%) experienced the largest declines. The UK has seen a similar decline of -2% in 2024.

Conversely, countries like Bulgaria +16.5%, Poland +14.4%, Hungary +13.4%, Croatia +12.3%, and the Netherlands +10.3% led the charge with double-digit growth.

In the U.S, property prices were reported to have seen a +2.6% increase and Canada saw a 2.5% increase according to the Canadian Real Estate Association (CREA).

Paul Stannard, Chairman and Founder of Portugal Pathways, shared his perspective on these developments. “Portugal’s property market reflects the broader appeal of the country as a destination for expats and investors alike.

‘’From its favourable climate to its vibrant culture and economic opportunities, it’s clear why so many are choosing to make Portugal their home or investment hub. These statistics further solidify Portugal’s position as a leading player in Europe’s real estate market.”