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Real estate experts have been expecting the local property market to shift for some time now, and the signs are all there: fewer sales, slightly less demand, and more available properties. Even so, the latest figures show that the price per square metre is still rising.

According to the data released by the National Institute of Statistics (INE), the median price of houses in Portugal was €1,641 per square metre in the third quarter of 2023. This represents a year-on-year increase of 10%.

However, it shows just a 0.7% increase compared to the previous quarter, reinforcing the belief that the market is starting to cool in 2024.

The latest report shows that house prices have increased in more than half of the most populous Portuguese municipalities. Among the 13 of the 24 municipalities with more than 100,000 residents, Barcelos and Guimarães, both in the north of Portugal, saw the most significant increases.

Conversely, there was a slowdown in 11 municipalities, including Beira Baixa (-8.2%), Douro (-4.4%), Alto Alentejo (-2.4%), and Baixo Alentejo (-0.3%), which recorded the largest year-on-year decreases in housing prices between July and September.

Meanwhile, although the Algarve hasn't seen significant differences in the price of property, it remains the second region where buying a home is most expensive. It's behind only the capital of Lisbon, and followed by Madeira, Setúbal and Porto.

Overseas buyers continue to spend more per square metre. The median value of houses and apartments purchased by international investors was €2,279 per square metre (a 4.5% increase compared to the same quarter last year), compared to the €1,602 spent by Portuguese families.

You needn't be spending more than the fairest price for your perfect property, which is where Algarve Home Sales comes in. Get in touch!