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In 2024, the real estate market faced challenges, but it also saw several opportunities for adaptation and transformation emerge. As we prepare for the year ahead, it is worth looking back and remembering some of the main factors impacting the sector.
Real estate in 2024: a retrospective
Portugal continued to stand out as an attractive destination for investment, both for its political and economic stability, as well as for its quality of life. This positive scenario continues to strengthen the country's position on the international scene and attract foreign direct investment.
The shortage of labor in construction continued to be a challenge. This limitation highlighted the need for solutions to overcome the constraints at a time when the demand for real estate grows, and will be an important issue on the table over the next year.
In the rental market, it is impossible to look to 2024 without thinking about the Mais Habitação program, whose measures to regulate the sector have generated friction among owners and investors.
But the new political cycle in Portugal, as a result of the 2024 legislative elections, has transformed the panorama – and the inauguration of a new government has had an impact on the sector. The proposals of the new executive for housing, with the revocation of decisions of the previous government and the implementation of new measures, such as support for young people to buy their first home, have stirred up the waters of the market and should continue to mark the sector in the coming year.
2024 was also a year of affirmation of artificial intelligence (AI), which has taken on a role of increasing importance in the sector. Among other advantages, AI tools help in the analysis of market trends, boost personalization and make a set of processes in the day-to-day life of real estate consultants more efficient. This year has shown that this technology is here to stay and is an opportunity to optimize the work of professionals in the sector.
Outlook for 2025
Based on Caixa Geral de Depósitos' macroeconomic forecasts, 2025 should bring a favourable scenario. The economy is expected to grow, disposable income is expected to increase and interest rates are reduced, creating conditions for greater borrowing capacity and improved buyers' effort rates.
However, insufficient supply and increased demand are expected to continue to put pressure on house prices, both in Portugal and in Europe, where growth is expected.
2024 was a year of changes and challenges, but also of new windows of opportunity that prepared the ground for a 2025 that is expected to be stable and dynamic. The real estate market in Portugal will continue to face pressure between supply and demand, but with good growth prospects.
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