How interest rate cuts influence property sales in Portugal

The decrease in interest rates in Portugal throughout 2024 brought new life to the real estate market. In response to this reduction, there was an 8.5% increase in residential transactions between the first and second quarters of 2024, especially in the metropolitan regions of Lisbon and Porto.

Previously reluctant domestic buyers are now seeing better opportunities to finance properties with more affordable installments, while foreign investors are once again showing interest, especially in the housing and tourism sectors. Prices, in turn, are following this growing demand, registering a monthly appreciation of 0.9% in August.

This trend demonstrates the importance of maintaining attractive rates to sustain market growth and attract new investors. However, as demand increases, prices can also rise, making it necessary to strike a careful balance between affordability and profitability to keep the sector afloat.