The supply of new homes in Portugal has doubled over the past five years, but demand continues to quickly absorb new construction, keeping prices high.
Source: Adobe Stock
Author: Redaction
Growth in new construction
In recent years, new housing construction has seen significant growth, with more and more units being placed on the market. Despite the increased supply, the country continues to face an affordable housing deficit, reflecting demand that clearly exceeds availability. New construction plays an important role in the market but at prices that many families still struggle to afford.
New homes more expensive than existing ones
New homes tend to have higher prices than existing homes due to construction costs, land, licensing, and taxes. This difference makes access more difficult, especially for young people and middle-income families. Still, the market shows dynamism, with new units being quickly absorbed, which keeps pressure on prices.
Geographical concentration and types of housing
New homes are mainly concentrated in the North, Centre, and Greater Lisbon regions, while autonomous regions and inland areas have lower supply. Most units correspond to medium-sized types, with two or three bedrooms, reflecting the predominant demand for affordable family housing.
Incentives and future outlook
The Government has been implementing measures to encourage new construction and facilitate access to housing, including tax benefits and faster licensing. Although some developers are waiting for legal clarifications before launching new projects, construction is expected to continue growing, helping to relieve price pressure and meet the country’s housing needs.
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