2021 was the year in which more homes were sold in Portugal, with 11% being bought by foreigners

27 Jan 2022 min de leitura

The real estate market continued to be prominent in 2021, after being considered one of the most resilient sectors in the first year of the pandemic. According to the consultancy JLL, 190 thousand homes were traded last year, representing a growth of around 20% compared to 2020. It is estimated that the volume of transactions was around 30 billion euros, being considered the “best year ever” for the sector.

On the day it released the annual market report “Market 360º”, JLL also states that “Housing was the star sector of real estate in 2021, surpassing all previous levels of activity”. Data from the consultancy also show that, in 2021, around 190 thousand homes were sold, 18% more than in 2020 and 12% more than in 2019 (a record year for the national residential market).

Of the total housing transactions, 89% were sold to domestic buyers and around 11% to foreigners. The consultant states that “the strong market fundamentals are expected to continue in 2022, with a new year of high activity expected”, stressing that “Portugal is already a recognized residential destination abroad” and for this reason the changes to the gold visas should not have negative consequences for the market.

In a not so positive perspective, the problem of shortage of supply remains. Joana Fonseca, responsible for Research at JLL, says that the housing stock “has increased by only 1.9% in the last decade, which corresponds to around 108,500 dwellings, that is, less than what was sold this year”.

The CEO of JLL Portugal, Pedro Lancastre, warns of the difficulties that persist in the residential market, namely the “slowness and bureaucracy of the licensing processes”. The Executive Director also notes that the number of residential units licensed in Portugal in the last decade was 70% below the previous decade (2001-2011).

In addition, strong increases in construction costs have impacted business plans and end-user pricing. Recent data shows a 7.4% increase in construction costs in the last year alone. The consultant warns of the importance of “managing these constraints so that the creation of supply can be swift and respond to the country's needs”.

Source: Market 360º report disclosed to the communication by the consultancy JLL