The price of property in Portugal continues to rise however, experts predict that the value of resale properties is set to fall as new building projects begin to come on to the market.

Statistics from the Portuguese Office for National Statistics (INE) show that more than 40 municipalities in the country have above average prices per square metre, with the highest prices being found in the Algarve and Lisbon.

In general house prices are up by 7.9% across Portugal, to an average of €984, however prices in the most expensive areas of the Algarve average €1,659 while in Lisbon the average is €1,666 per square metre.

Meanwhile, the prices of resale homes in Portugal are expected to decline this year as newly built homes help to ease the lack of supply within the country.

According to Maria Empis, who heads the JLL consultancy research department, "as new stock comes up, it will balance the over-inflated prices of resale homes”.

The "too high" prices in second-hand homes are currently justified by supply and demand, so it is now expected that the "impact of the new supply will be felt in resale property prices”, according to the expert, who indicated that prices will continue to grow, but less rapidly.

During 2018 real estate transactions in Portugal exceeded some 30 billion euros thanks to supply limitations, however JLL anticipate that the record figures registered last year will not be repeated in 2019.

Meanwhile, other external uncertainties can also affect the Portuguese real estate sector. Patrícia Barão, who heads the residential sector, said that the effects of Brexit have been felt by some real estate developers, who are choosing to wait to avoid the exchange effect.