The year 2017 showed highly positive results for the property market in Portugal by registering 50% higher prices than the previous year. Approaching the 2 billion euros mark, the housing market was more profitable and helped to highlight the real estate boom that since the beginning of the year had been less active and raised the feeling of growth, thus turning it into an effective expansion.
Along with this improvement in the sector, the country witnessed a clear increase in house prices, both in terms of sales and rentals.
According to data from the National Statistical Institute, in 2017, the residential property market grew by 20%, the origin of which was diverse as it highlighted the role of international buyers and investors.
The luxury property market is also not too far behind in this clear and visible improvement in the real estate industry. In fact, in 2017, the premium segment presented itself as one of the top players, maintaining an unprecedented dynamism and presenting such properties mainly in the Lusitanian capital. In this sector, average price increases were between 10% and 20%, with some regions witnessing price increases of more than 30%.
These figures are at a stage where Portugal's positioning in international rankings calls for the purchase of a home in our country. Perceived as a safe and affordable country, with a quality of life above average, our country was considered as the best place for retirement in 2017 and one of the must-see holiday destinations. By boosting the real estate market, all these factors have contributed to the relaunch of the property sector and the creation of a sustainable and self-sustaining environment, where expansion is increasingly becoming a possibility.
In the last quarter of the year, this reality seemed to stand out even more, since Portugal was among the best countries in Europe in terms of real estate growth, with a 10% increase in the sector. This remarkable increase accompanied by the economic recovery was also in countries such as the Netherlands (10%) and Spain (7%).
The growth trend demonstrated by Portugal's real estate sector throughout 2017 has not shown any tendency to worsen, and it is expected that the prices will increase even more in the year 2018.
Although there are some concerns about the property price increases and what they may mean for Portuguese families, the truth is that the real estate market has felt the improvement in the sector and this has contributed to Portugal's financial restructuring.