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The real estate market has faced several questions over the past couple of years. When will prices stop going up? Is it the time to sell? Should we buy or rent? Now, another question has emerged: are there enough properties?

According to the real estate data bank Confidencial Imobiliário, the number of homes for sale in Portugal fell to a 15-year low towards the end of last year. This drop in supply has been particularly evident in the Metropolitan Areas of Lisbon and Porto.

"The year 2022 ended with the residential supply at record lows of around 15 years, accounting for around 47,200 homes for sale in mainland Portugal in the fourth quarter of the year," said the data bank in a statement.

Of these 47,200 properties, 17,600 are new homes (37%) and 29,600 are used (63%). It's “the lowest quarterly volume of supply since mid-2007 and consolidates two years of successive reductions in the portfolio of properties available for sale in the country”.

The issue is causing concern for local real estate experts, who point out that measures such as streamlining licensing processes, increasing the supply of homes (particularly those for the middle class) and boosting the rental market should correct the situation.

And it seems that the Portuguese government is taking note. A new law in the property sector is due to bring in more land to build houses and include tax benefits for real estate developers.

Expected to be presented at the Council of Ministers on February 16th, the State's main goal is that, in partnership with the private sector, more houses will be placed on the residential market.

With supply low and more overseas investors buying in Portugal, knowledgeable local experts are more valuable than ever. Contact the Algarve Home Sales team here.