In April, the mean rental cost for a residence reached 1,300 euros on Portugal's second-largest real estate platform.
Imovirtual, one of Portugal's primary digital real estate platforms, currently lists approximately 15 thousand properties for rent, marking a 25% rise from the average of just over 12 thousand in 2023. Nevertheless, this surge in housing availability hasn't affected prices, as reported by Dinheiro Vivo.
According to Tiago Ferreira, director of Imovirtual and OLX Imóveis, the average rental price surged to 1,300 euros in April, marking an 8% uptick compared to the same period last year. While Ferreira observes "indications of stabilization" in the rise of advertised rates, it appears these increases are still driven by high demand and limited supply.
The supply of homes for sale is dwindling. The portal, owned by the conglomerate that possesses OLX and StandVirtual, recorded over 232 thousand properties in 2024, down from around 240 thousand in the previous year. This decline in supply is attributed to the prevailing macroeconomic conditions, where the expenses associated with new construction remain notably high, coupled with enduring challenges such as lengthy licensing procedures and an abundance of vacant properties in the market, as explained by Tiago Ferreira. In April, the average advertised price of houses for sale on Imovirtual stood at 325 thousand euros, reflecting a 10% surge compared to April 2023.
This data from the outset of the year underscores the persistent challenge facing the real estate sector: the scarcity of available properties remarks Ferreira. This shortage necessitates urgent attention to reconcile the existing demand. To address this, it's crucial to implement policies that stimulate new housing construction, such as reducing VAT to 6% on new developments to accelerate the pace of real estate projects and significantly decreasing taxes for first-time homebuyers, he asserts. Nonetheless, Ferreira acknowledges that in the forthcoming months, the market may attain a better equilibrium between supply and demand, owing to government incentives and improved economic conditions, which are yielding more favorable interest rates.
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