There are several shortages in Portugal's housing market, as shown by data from the INE (National Statistics Institute), which reveals that between 2018 and 2022 only 10 properties will be sold for every one built, making the supply of houses on the market a long-term problem.
The Tax Authority reached the same conclusions, with data pointing to an average growth in the housing stock of just 0.29 per cent per year from 2017 to 2022, which is quite low considering the growth in the population. This is because, according to INE, residents in Portugal over the age of 15 increased at an average rate of 0.41 per cent.
This scenario is particularly acute in the metropolitan areas of Lisbon and Porto, where values in both the rental and purchase markets have soared in recent years. Even so, the municipalities in the interior have seen an even more significant drop in their housing stock, mainly because in the last six years the volume of new property construction has been scarce and refurbishment has taken place at a lower rate than the number of buildings demolished.
Just over 18,000 homes entered the market between 2017 and 2022
According to data from the Tax Authority, not only have very few houses been built in Portugal in the last six years, but only around 18,000 properties have entered the market, which means an increase of less than 100,000 homes.
According to the AT, in 2022 there were around 6.4 million buildings registered in the urban land registry for residential use in Portugal's 308 municipalities, or just over 92,700 more homes than in 2017.
According to APPII (Portuguese Association of Property Developers and Investors), "new supply grew by less than 1% in the market", which proves the sector's bleak outlook. However, the fall in residential property construction has been a trend since 2011, when only 14.4% of the total number of properties in Portugal were built.